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Consider the following information from the Alasca investment fund. $600,00 in stock A with beta of 1.2 and $400,000 in stock B with a beta
Consider the following information from the Alasca investment fund. $600,00 in stock A with beta of 1.2 and $400,000 in stock B with a beta of 0.4. If the market rate of return is 12 percent and the risk-free rate is 6 percent. What is its required rate of return?
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