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If the risk-free rate of return is 2% and the market risk premium is 7%, then the required return on the portfolio is 8,000

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If the risk-free rate of return is 2% and the market risk premium is 7%, then the required return on the portfolio is 8,000 shares of Stock A 15,000 shares of Stock B 25,000 shares of Stock C Amount Invested Beta $16,000 Beta = 1.3 $48,000 Beta = 1.8 $96,000 Beta = 2.2

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