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In addition, we have the following information: E(RA)=27.60%;E(RB)= 7.60%;A=11.02%;B=20.23%;A,B=214.56 (or 0.021456 ) ;A,B= 0.9624RF=6%;RM=16%,A=2.16 and B=.16 1. Calculate the expected return on a portfolio, P

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In addition, we have the following information: E(RA)=27.60%;E(RB)= 7.60%;A=11.02%;B=20.23%;A,B=214.56 (or 0.021456 ) ;A,B= 0.9624RF=6%;RM=16%,A=2.16 and B=.16 1. Calculate the expected return on a portfolio, P invested 60% in A and 40% in B. 2. Calculate the standard deviation of portfolio, P above. 3. Use the relevant information about Assets A and B (including CAPM) to mark the decide if each of A and B are correctly priced, overpriced, or underpriced. 4. Calculate the beta of portfolio P, and show whether it is fairly priced, overpriced, or underpriced

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