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Consider a portfolio that is composed of the following stocks. The treasury rate is 3%, the market risk premium is 5%. What is the expected

Consider a portfolio that is composed of the following stocks. The treasury rate is 3%, the market risk premium is 5%. What is the expected return of the portfolio?

Stock Amount Invested Beta

A $4 million 1.8

B $2 million 1.6

C $2 million 1.4

D $1 million 0.8

E $1 million 0.4

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