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Assume the return on the S&P 500 index is 14.50% and treasury bills provide a risk-free rate of 1%. ABC Co. stock sells for $58.50
Assume the return on the S&P 500 index is 14.50% and treasury bills provide a risk-free rate of 1%. ABC Co. stock sells for $58.50 a share. The beta of the stock is 1.43. What is the expected return on your portfolio if you decide to invest equally into these three assets? a. 15.16% b. 10.20% c. 9.70% d. 13.49% e. 11.94%
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