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Jacques is an analyst at a wealth management firm. One of his clients holds a $ 1 0 , 0 0 0 portfolio that consists
Jacques is an analyst at a wealth management firm. One of his clients holds a $ portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table:
Last Question: Suppose instead of replacing Atteric Incs stock with transfer fuels cos stock, Jacques considers replacing Atteric Incs stock with the equal dollar allocation to shares of company x stock that has a higher beta than atteric inc. if everything else remains constant, the required return from the portfolio would a Increase
B Decrease
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