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A portfolio exists that contains equal weights of Five securities: A stock with a beta of 1.5, B stock with a beta of 2.0, C
A portfolio exists that contains equal weights of Five securities: A stock with a beta of 1.5, B stock with a beta of 2.0, C stock with a beta of of -0.8, Dis a US Treasury Bond, and E is a security that tracks the market exactly. What is the beta of this portfolio?
What is the expected return of the A stock from Question 6 assuming the Treasury Bond has a 1.72% yield and the expected return of the market is 5.16%?
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