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stock A has a beta of 1.2 and the required return of 7%. the return on the overall stock market is 6% a.) determine the

stock A has a beta of 1.2 and the required return of 7%. the return on the overall stock market is 6% a.) determine the risk-free rate b.) assume the required return on the market increases to 8%. stock A's beta and the risk-free rate remain unchaged. what would stock A's new required return be after the change in the market's required return? c.) the required return on the market remains 8%. an investor forms a two-stock investment portfolio that has $3 million invested in stock A and 2 million invested in Stock B. Stock B' beta is twice as high as the beta of the overall market. what is the required rate of return on the investor's two-stock portfolio?

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