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Q 1 1 . Calculating Portfolio Betas. You own a stock portfolio invested 1 5 percent in Stock Q , 2 5 percent inQ 1

Q 11. Calculating Portfolio Betas. You own a stock portfolio invested 15 percent in Stock Q,25 percent inQ19.Reward-to-Risk Ratios. Stock Y has a beta of 1.25 and an expected return of 12.6 percent. Stock Z has a
beta of .85 and an expected return of 10.3 percent. If the risk-free rate is 4.1 percent and the market risk
premium is 7 percent, are these stocks correctly priced?
Stock R,40 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .85,.91,
1.31, and 1.76, respectively. What is the portfolio beta?
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