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Given the following information about Stock A: Po $62.75 BA= 1.3 DI $2.20 paid at end of year KM 11% annual R 5% annual 0

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Given the following information about Stock A: Po $62.75 BA= 1.3 DI $2.20 paid at end of year KM 11% annual R 5% annual 0 a. Estimate the price of stock A at the end of the year as follows b. Suppose that Stock a is combined with two other stocks Stock Proportion Beta A 0.25 1.3 0.40 0.9 C 0.35 1.1 What is the beta of the portfolio of three stocks? Check Answers: a. $68.58 b. 1.07

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