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An investor holds a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. Moreover, she is in the process of
An investor holds a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. Moreover, she is in the process of buying 1,000 shares of Alpha Corp. at $10 a share and adding it to her portfolio. Alpha has an expected return of 13.0% and a beta of 1.50. The total value of her current portfolio is $90,000. What will the expected return and beta on her portfolio be after the purchase of the Alpha stock
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