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A portfolio consists of four assets in equal weights. Asset 1 has a beta of 1.00. Asset 2 has a beta of 1.00. Asset 3
A portfolio consists of four assets in equal weights. Asset 1 has a beta of 1.00. Asset 2 has a beta of 1.00. Asset 3 has a beta of 1.50. Asset 4 has a beta of 1.20. If the portfolio's required return is 8.00% and the risk-free rate is 3.80%, what is Asset 2's required return?
a) 6.82%
B) 7.01%
C) 7.19%
D) 7.37%
E)7.56%
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