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An investor is forming a portfolio by investing $40,000 in stock A which has a beta of 1.50, and $35,000 in stock B which has

An investor is forming a portfolio by investing $40,000 in stock A which has a beta of 1.50, and $35,000 in stock B which has a beta of 0.90. The return on the market is equal to 6 percent and Treasury bonds have a yield of 2 percent. What is the required rate of return on the investor's portfolio?

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