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Asset | $ Invested | Expected Return | Beta Andy | $45,000 | 10.25% | 1.10 Betty | $105,000 | 9.50% | 0.80 Rf =
Asset | $ Invested | Expected Return | Beta Andy | $45,000 | 10.25% | 1.10 Betty | $105,000 | 9.50% | 0.80 Rf = Riskfree rate 3.00% RM = Market Return = 10.00% RRi = Rf + i x (RM Rf) ERp = WA x ERA + WB x ERB +....... p = WA x A + WB x B +.......
What is the Required Return of Betty? Is stock Betty: Under priced, Over priced or Fairly priced?
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