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Project A Project B Initial Outlay (50,000) (70,000) Inflow Year 1 12,000 13,000 Inflow Year 2 12,000 13,000 Inflow Year 3 12,000 13,000 Inflow Year

Project A Project B
Initial Outlay (50,000) (70,000)
Inflow Year 1 12,000 13,000
Inflow Year 2 12,000 13,000
Inflow Year 3 12,000 13,000
Inflow Year 4 12,000 13,000
Inflow Year 5 12,000 13,000
Inflow Year 6 12,000 13,000
You are considering 2 independent projects, A and B. The required rate of return for both projects is 12%. Calculate NPV and indicate if the projects should be accepted.
An investor currently holds the following portfolio:
Calculate the Beta for this portfolio. Is this a risky portfolio? Why?
(Remember to first calculate the percentage (%) each stock is of the overall portfolio)
Invested Amount Beta

Stock A

8000.00 1.3
Stock B 24000.00 1.8
Stock C 48000.00 2.2

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