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An investor currently holds the following portfolio: Stock A $12,000 Beta = 1.4 Stock B $18,000 Beta = 1.2 Stock C $20,000 Beta = 1.6

An investor currently holds the following portfolio: Stock A $12,000 Beta = 1.4 Stock B $18,000 Beta = 1.2 Stock C $20,000 Beta = 1.6 If the risk-free rate of return is 3% and the market risk premium is 7%, then the required return on the portfolio is:

14.032%

12.8%

8.632%

12.856%

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