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An investor plans to invest funds in the following stocks: Stock Beta Amount Invested A 1.27 $1,851.00 B 1.25 $2,696.00 C 0.77 $1,080.00 The risk-free
An investor plans to invest funds in the following stocks:
Stock | Beta | Amount Invested |
---|---|---|
A | 1.27 | $1,851.00 |
B | 1.25 | $2,696.00 |
C | 0.77 | $1,080.00 |
The risk-free rate is currently 3.00%, while the market risk premium is 8.00%.
What is the beta of this portfolio?
Given the above information, find the required return to hold this portfolio.
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