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Assume Rf = 5% and Rm = 8% a) If company A has A = 1.4 what is the expected rate of return? b) What
Assume Rf = 5% and Rm = 8% a) If company A has A = 1.4 what is the expected rate of return? b) What if company B has B = .6? c) What if you have a portfolio with 50% in stock A and 50% in stock B? d) If company C has C = 1.4 what is its expected return? e) What is the expected return of a portfolio that has 50% in stock A and 50% in stock C
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