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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 1. A stock has a beta of 1.3 and an expected return of 13.2 percent. A risk-free asset currently earns 1.2 percent. The beta of a portfolio comprised of these two assets is $0.94 What percentage of the portfolio is invested in the stock?A.84%B.87%C.68%D.72%E.63%
Part 2.. Arnold Belt and Bearing has identified two mutually exclusive projects. Project A has cash flows of --$40,000, $21,200, $16,800, and $14,000 for Years 0 to 3, respectively. Project B has a cost of $38,000 and annual cash inflows of $25,190 for 2 years. At what rate would you be indifferent between these two projects?
A.-4.38%B.9.41%C.-1.72%D.6.34% E.8.28%

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