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An investor has $10,000 to invest in 5 different stocks. Information regarding the 5 stocks is shown in the table below: Stock Expected Return Beta
An investor has $10,000 to invest in 5 different stocks. Information regarding the 5 stocks is shown in the table below: Stock Expected Return Beta Amount Invested $1,701.00 $2,543.00 $2,779.00 $889.00 $2,088.00 9.00% 1.00 10.00% 1.20 6.50% 0.70 8.00% 0.90 12.00% 1.40 Also, the risk free rate for the economy is currently 4.00%. Given the above information, what is the market risk premium for investors (assuming the expected portfolio return is equal to the required portfolio return)
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