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For the information given below find the following: Calculate the expected return on your portfolio. Calculate the portfolio's beta. Suppose you drop stock # 2

image text in transcribed For the information given below find the following: Calculate the expected return on your portfolio. Calculate the portfolio's beta. Suppose you drop stock # 2 from your portfolio and replace it with another stock that has a beta of 1.35 and an expected return of 25%, how your portfolio's return and beta would be affected by this change? Answer the question intuitively and then calculate the new return and beta. Taggart Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% return. What is the firm's expected rate of return? What is the standard deviation? Dothan Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the

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