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Answer the questions below with the given information for stocks a, b, and c. Assume the risk-free rate of return is 2% and the expected
Answer the questions below with the given information for stocks a, b, and c. Assume the risk-free rate of return is 2% and the expected market return is 10% 1. Calculate the required return for stocks A,B, and C. 2. Assuming an investor with a well-diversified portfolio, which stock would the investor want to add to his portfolio? 3. If the investor creates a portfolio with 30% in A,30% in B, and the remaining in C, find the expected return, portfolio beta, and the required rate of return for the portfolio
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