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Question 4 (10 marks) A portfolio consisting of three stocks is characterized by the following: a) Calculate the portfolio's expected return. (3 marks) b) Calculate

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Question 4 (10 marks) A portfolio consisting of three stocks is characterized by the following: a) Calculate the portfolio's expected return. (3 marks) b) Calculate the beta of the portfolio. (3 marks) c) If the expected return on the market is 10% and the risk-free rate is 3%, what is the required return on the portfolio? Calculate the Sharpe ratio of portfolio. (4 marks)

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