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An investor is forming a portfolio by investing $86,534 in stock A that has a beta of 2, and $23,817 in stock B that has
| An investor is forming a portfolio by investing $86,534 in stock A that has a beta |
| of 2, and $23,817 in stock B that has a beta of 0.4. The market risk |
| premium is equal to 2.8% and Treasury bonds have a yield of 2.5%. What is the |
| required rate of return on the investors portfolio? |
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