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assume that you hold a diversified $90,000 portfolio with a beta of 1.20, and that you are in the process of buying 1,000 shares of

assume that you hold a diversified $90,000 portfolio with a beta of 1.20, and that you are in the process of buying 1,000 shares of a high - tech stock at $10 a share with beta of 1.70, and adding it to the portfolio. also assume that the risk-free rate is 2% and that the expected rate of return on the market is 10.4%. based on the CAPM what would be the expected rate of return for your portfolio after the purchase of this stock?

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