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Please show steps You are an investor in common stock, and you currently hold a well-diversified portfolio which has an expected return of 13 percent,
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You are an investor in common stock, and you currently hold a well-diversified portfolio which has an expected return of 13 percent, a beta of 1.3, and a total value of $90,000. You plan to increase your portfolio by a total value of $10,000 by buying 1,000 shares of AT\&E at $10 a share. AT\&E has an expected return of 21 percent with a beta of 1.9. What will be the expected return and the beta of your portfolio after you purchase the new stock? rp=13.8% and p=1.36 rp=13.8% and p=1.18 rp=15.8% and p=1.18 rp=15.8% and p=1.36Step by Step Solution
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