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John Smith has the following portfolio: Stock Investment Beta A $50,000 1.40 B $150,000 0.80 C $125,000 1.00 D $50,000 1.20 He plans to

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John Smith has the following portfolio: Stock Investment Beta A $50,000 1.40 B $150,000 0.80 C $125,000 1.00 D $50,000 1.20 He plans to sell Stock A and replace it with Stock E which has a beta of 0.80. If the government bond rate is 4% and the market return is 10%, what is the expected return on John's revised portfolio?

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