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Exercise #5: The risk-free rate is 4%; the expected return on the market is 10%. Stock A has a beta of 0.75; Stock B has

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Exercise #5: The risk-free rate is 4%; the expected return on the market is 10%. Stock A has a beta of 0.75; Stock B has a beta of 1.4. Compute the expected return on a portfolio with 45% in A and 55% in B. ER45/55 = %

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