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Stock Weight (in the portfolio) Beta A 0.3 1.47 B 0.2 0.78 C 0.5 1.22 The risk-free rate is 4.5% and the market risk premium
Stock | Weight (in the portfolio) | Beta |
A | 0.3 | 1.47 |
B | 0.2 | 0.78 |
C | 0.5 | 1.22 |
The risk-free rate is 4.5% and the market risk premium is 7%.
(a). What is the Beta of the portfolio comprised of Stock A,B and C?
(b). What is the expect return of the portfolio?
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