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Question 2: Suppose you hold a portfolio with a beta equal to 1.4. If the expected market risk premium is 12.5% and the risk-free rate

Question 2: Suppose you hold a portfolio with a beta equal to 1.4. If the expected market risk premium is 12.5% and the risk-free rate is 3.5%. What is the portfolios expected rate of return?

16.1%
21.0%
17.4%
5.025%

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