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A share has a beta of 0.96, an expected return of 8.26%, and lies on the security market line. A risk-free asset is yielding 2.4%.
A share has a beta of 0.96, an expected return of 8.26%, and lies on the security market line. A risk-free asset is yielding 2.4%. You want to create a $12000 portfolio consisting of Share A and the risk-free security such that the portfolio beta is 0.65. What rate of return should you expect to earn on your portfolio
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