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An investor currently has all of his wealth in Treasury bills. He is considering investing one-third of his funds in General Electric, whose beta is
An investor currently has all of his wealth in Treasury bills. He is considering investing one-third of his funds in General Electric, whose beta is 1.7, with the remainder left in Treasury bills. The expected risk-free rate (Treasury bills) is 7 percent and the market risk premium is 9.1 percent. Determine the beta and the expected return on the proposed portfolio. Round your answers to two decimal places.
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