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A portfolio has an assigned beta of 1.05, the risk-free rate is 2.5%, and the market rate of return is 8.0%. What is the project's

A portfolio has an assigned beta of 1.05, the risk-free rate is 2.5%, and the market rate of return is 8.0%. What is the project's expected rate
of return? Analyse whether the investor should invest in such portfolio? If investor is following Black Scholes Model and interesting in investing
in Option as an alternative of this portfolio, what will be the factors which will impact his decision? Explain

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To calculate the expected rate of return for the portfolio we can use the Capital Asset Pricing Model CAPM Expected Rate of Return RiskFree Rate Beta ... blur-text-image

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