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An investor is forming a portfolio by investing $80,873 in stock A that has a beta of 0.8, and $89,197 in stock B that has

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An investor is forming a portfolio by investing $80,873 in stock A that has a beta of 0.8, and $89,197 in stock B that has a beta of 0.8. The market risk premium is equal to 2.8% and Treasury bonds have a yield of 1.7%. What is the required rate of return on the investor's portfolio? 3.84% 4.04% 3.74% 3.94% 3.64% Question 16 1 pts Your portfolio consists of $80,406 invested in a stock that has a beta = 1.2. $97,421 invested in a stock that has a beta=0.8, and $99.775 invested in a stock that has a beta - 1.5. The risk-free rate is 1.8%. Last year this portfolio had a required return of 5.7%. This year nothing has changed except that the market risk premium has increased by 4.2%. What is the portfolio's current required rate of return? 11.0% O 10.6% O 10.7% 10.8%

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