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An investor is forming a portfolio by investing $50,000 in stock A that has a beta of 1.50, and $25,000 in stock B that has
An investor is forming a portfolio by investing $50,000 in stock A that has a beta of 1.50, and $25,000 in stock B that has a beta of 0.90.The market risk premium is equal to 6%and Treasury bonds have a yield of 4%.What is the required rate of return on the investor's portfolio?
Select one:
a.11.8%
b.7.5%
c.7.0%
d.6.6%
e.6.8%
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