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Question B2 (a) The stock market return is 15% and the risk-free rate is 6%. Stock Amount Invested Beta PNP KNK KNL 25,000 40,000 35,000

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Question B2 (a) The stock market return is 15% and the risk-free rate is 6%. Stock Amount Invested Beta PNP KNK KNL 25,000 40,000 35,000 0.70 1.50 1.10 Considering the information provided for a portfolio in the table answer the following: (1) Calculate the beta of the portfolio. (4 marks) (ii) Use the capital asset pricing model (CAPM) to calculate the required rate of return on the portfolio. (2 marks) (iii) Suppose that a financial advisor indicates that the portfolio is expected to earn an annual rate of 11%, would you buy this portfolio based on your calculation in part (ii)? Explain. (4 marks) (b) Evaluate the difference between fundamental and technical analysis

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