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Given the spreadsheet below, calculate the portfolio beta and the expected return on this two stock portfolio using the CAPM. a. If the weights were
Given the spreadsheet below, calculate the portfolio beta and the expected return on this two stock portfolio using the CAPM. a. If the weights were 50/50, would this increase or decrease the portfolio return? b. If the market's expected return had been 8% with the 60/40 weights, would this increase or decreased the portfolio return? The Market's Expected Return 9% The Risk Free Rate 2.50% Beta for Bateman Industires 0.98 Beta for Advanced Solar Arrays 1.34 Weight for Bateman 60% Weigh for Solar Arrays 40% Portfolio Beta Expected Return on the Portfolio
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