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A risky stock has a Beta (beta) of 1.1 and an expected return of 9%. The Risk-Free Rate of Return is 2.1%. What is the

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A risky stock has a Beta (beta) of 1.1 and an expected return of 9%. The Risk-Free Rate of Return is 2.1%. What is the expected return of a portfolio which is equally invested in the risk-free security and the risky investment? What is the Market Risk Premium (MRP)? Stock N has a Beta (beta) of 1.15 and an expected return of 12.5%. Stock Q has a Beta (beta) of .75 and an expected return of 9.1%. The Risk Free rate (R_r) rate is 2.3% and the Market Risk premium (MRP) is 6.8%. Are these Stocks correctly priced? Stock N: Stock

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