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John Smith has the following portfolio: John is thinking of making a change to his portfolio: - He would sell his JP Morgan bank stock

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John Smith has the following portfolio: John is thinking of making a change to his portfolio: - He would sell his JP Morgan bank stock (JPM) and replace it with Walmart stock (WMT) which has a beta of 0.80 . - He believes that the appropiate government bond rate is 4% and the market return is 10%. What would be the expected return on John's revised portfolio? (Show your work.)

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