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Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of

Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of ABC Inc. at $10 a share and adding it to your portfolio. ABC has an expected return of 21.5% and a beta of 1.70. The total value of your current portfolio is $90,000. What will the expected return in percentage be after the purchase of the ABC's stock?

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