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Save Homework: Homework 8 Score: 0 of 10 pts 2 of 5 (0 complete) HW Score: 0%, 0 of 50 pts P8-7 (similar to) Question

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Save Homework: Homework 8 Score: 0 of 10 pts 2 of 5 (0 complete) HW Score: 0%, 0 of 50 pts P8-7 (similar to) Question Help (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of two portfolios. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and return as measured by the expected rate of return? Portfolio A Portfolio B Probability Return Probability Return 0.15 - 1% 0.05 0.57 0.28 0.28 24% 0.38 13% 0.29 15% (Click on the doon in order to copy du contents into a produt) a. The expected rate of return for portfolio Als % (Round to two decimal places) 3% 9% 17% Homework: Homework 8 Save Score: 0 of 10 pts 3 of 5 (0 complete) HW Score: 0%, 0 of 50 pts P8-13 (similar to) Question Help (Expected rate of return using CAPM) a. Compute the expected rate of return for Intel common stock, which has a 1.1 beta. The risk-free rate is 4 percent and the market portfolio (composed of New York Stock Exchange stocks) has an expected return of 14 percent b. Why is the rate you computed the expected rate? a. The expected rate of return for Intel common stock is % (Round to one decimal place.)

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