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please be accurate Suppose the current risk free rate is 7.6%. Potpourri Inc. stock has a beta of 1.7 and an expected return of 16.7%.
please be accurate
Suppose the current risk free rate is 7.6%. Potpourri Inc. stock has a beta of 1.7 and an expected return of 16.7%. (Assume CAPM is true) A. What is the market risk premium? B. Magnolia Industries stock has a beta of 0.8. What is Magnolia stock's expected return? C. Suppose you have invested $10,000 in both Potpourri and Magnolia, and the beta of the portfolio is 1.07. How much did you invest in each stock? What is the portfolio's expected return Step by Step Solution
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