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Assume that you hold a well-diversified portfolio that has an expected return of 10.0% and a beta of 1.40. You are in the process of

Assume that you hold a well-diversified portfolio that has an expected return of 10.0% and a beta of 1.40. You are in the process of buying 10,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 15.0% and a beta of 1.60. The total value of your current portfolio is $400,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock?

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