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A portfolio has an expected return of 12.5%. The portfolio consists of stock A with an expected return of 7% and stock B with a

A portfolio has an expected return of 12.5%. The portfolio consists of stock A with an expected return of 7% and stock B with a beta of 1.28. The risk-free rate of return is 3% and the market risk premium is 8%. What is the portfolio weight of Stock A?

A) 12%

B) 22%

C) 24%

D) 30%

E) 36%

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