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Stock A has a beta of 0.66 and volatility of 0.52. Stock B has a beta of 1.38 and volatility of 0.91. You form a
Stock A has a beta of 0.66 and volatility of 0.52. Stock B has a beta of 1.38 and volatility of 0.91. You form a portfolio with $18,000 in Stock A and $4,000 in Stock B. What is your portfolio's expected return if the market risk premium is 9.0% and the T-Bill yield is 2.8%? Enter your answer as a decimal showing four decimal places. For example, if your answer is 8.25%, enter .0825.
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