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Suppose that a portfolio consists of the following stocks: The risk-free rate (r^f) is 7 percent and the market risk premium (r^mr^f) is 4.6 percent.
Suppose that a portfolio consists of the following stocks: The risk-free rate (r^f) is 7 percent and the market risk premium (r^mr^f) is 4.6 percent. a. Determine the beta for the portfolio. Round your answer to two decimal places. $ c. Determine the expected return on the portfolio in parts a and b. Do not round intermediate calculations. Round your answers to two decimal places. Expected Return (Original portfolio): Expected Return (Revised portfolio): % %
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