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QUESTION 36 An investor is forming a portfolio by investing $50,000 in stock A which has a beta of 2.1, and $50,000 in stock B
QUESTION 36
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An investor is forming a portfolio by investing $50,000 in stock A which has a beta of 2.1, and $50,000 in stock B which has a beta of 0.6. The market risk premium is equal to 5% and treasure bonds have a yield of 3% (rRF). Whats the portfolio beta?
1.60
1.85
1.50
1.35
5 points
QUESTION 37
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Using the information in Question 36, calculate the required rate of return on the investors portfolio
8.25%
10.55%
9.75%
9.15%
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