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An investor's portfolio consists of the following stocks: The current risk free rate of return is 6.5% and the expected return on the market portfolio

image text in transcribed An investor's portfolio consists of the following stocks: The current risk free rate of return is 6.5% and the expected return on the market portfolio is 16%. Required: A. Compute the expected return of the portfolio and the portfolio beta. (12 marks) B. Compute the required rate of return for the NCB stock using the Capital Asset Pricing Model (CAPM). (4 marks) C. Explain the difference between diversifiable and non-diversifiable risks using examples. (4 marks)

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