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Assume the return on the S&P 500 index is 13.90% and treasury bills provide a risk-free rate of 1%. ABC Co. stock sells for $79.20

Assume the return on the S&P 500 index is 13.90% and treasury bills provide a risk-free rate of 1%. ABC Co. stock sells for $79.20 a share. The beta of the stock is 1.25. What is the expected return on your portfolio if you decide to invest equally into these three assets?

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