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D 6 . Assume that you hold a well - diversified portfolio that has an expected return of 1 1 . 0 % and a

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6. Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 22.5% and a beta of 1.20. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of Alpha stock? Do not round your intermediate calculations.
a.11.42%;1.04
b.11.54%;1.26
c.15.07%;1.33
-d.12.15%;1.20
e.13.97%;0.97
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