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i.There are three popular stocks with the following information. (02) Stocks Expected Return Standard Deviation Beta Alpha 11% 17% 0.7 Bravo 13% 17% 1.3 Charlie

i.There are three popular stocks with the following information. (02)

Stocks Expected Return Standard Deviation Beta

Alpha 11% 17% 0.7

Bravo 13% 17% 1.3

Charlie 15% 17% 1.8

You have invested one-third of your assets in each of the three stocks. The risk-free rate is 7%, and the market is in equilibrium.

a. Calculate the market risk premium?

b. Calculate the beta of your investment?

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