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Consider the following information: Portfolio Expected Return Beta Risk-free 10 % 0 Market 18 1.0 A 16 .9 a. Calculate the expected return of portfolio

Consider the following information:

Portfolio Expected Return Beta
Risk-free 10 % 0
Market 18 1.0
A 16 .9

a. Calculate the expected return of portfolio A with a beta of .9.

Expected return %

b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign.)

Alpha %

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