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Part 1 . A stock has a beta of 1 . 3 and an expected return of 1 3 . 2 percent. A risk -
Part A stock has a beta of and an expected return of percent. A riskfree asset currently earns percent. The beta of a portfolio comprised of these two assets is $ What percentage of the portfolio is invested in the stock?ABCDE
Part Arnold Belt and Bearing has identified two mutually exclusive projects. Project A has cash flows of $ $ $ and $ for Years to respectively. Project B has a cost of $ and annual cash inflows of $ for years. At what rate would you be indifferent between these two projects?
ABCD E
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