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Q. You hold a portfolio of Rs. 10,00,000 with a beta of 3.75. You plan to include another stock as a part of your portfolio

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You hold a portfolio of Rs. 10,00,000 with a beta of 3.75. You plan to include another stock as a part of your portfolio with beta of 2 by making investment of Rs. 200,000. Assuming the risk-free rate is 7.25% and the expected return on the market is 14.5%. What is the expected return on your new portfolio?

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