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(Security market line) You are considering the construction of a portfolio comprised of equal investments in each of four different stocks. The betas for
(Security market line) You are considering the construction of a portfolio comprised of equal investments in each of four different stocks. The betas for each stock are found below: Asset Beta A 2.00 B 0.90 C 0.55 - 1.80 D (Click on the icon in order to copy its contents into a spreadsheet.) a. What is the portfolio beta for your proposed investment portfolio? b. How would a 25 percent increase in the expected return on the market impact the expected return of your portfolio? c. How would a 25 percent decrease in the expected return on the market impact the expected return on each asset? c. A 25% decrease in the expected return on the market will have the following impact on the expected return on each asset: Asset A would by %. (Select from the drop-down menu and round the answer to two decimal places.) Asset B would by %. (Select from the drop-down menu and round the answer to two decimal places.) Asset C would by %. (Select from the drop-down menu and round the answer to two decimal places.) Asset D would by %. (Select from the drop-down menu and round the answer to two decimal places.)
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