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Exercise #6: Portfolio beta. The risk-free rate is 4%; the expected return on the market is 11%. Stock A has a beta of 0.7; Stock

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Exercise \#6: Portfolio beta. The risk-free rate is 4%; the expected return on the market is 11%. Stock A has a beta of 0.7; Stock B has a beta of 1.0. Stock C has a beta of 1.6. Compute the expected return on a portfolio with 40% in A, 20\% in B, and 40% in B

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