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Suppose you have a portfolio equally invested in four stocks. Each stocks expected return, standard deviations, and beta are in the following table. What is

Suppose you have a portfolio equally invested in four stocks. Each stocks expected return, standard deviations, and beta are in the following table. What is your portfolios expected return? LO4

Stock A

Stock B

Stock C

Stock D

Expected Return

14%

10%

7%

1%

Standard Deviation

25%

12%

6%

6%

Beta

2.3

1.8

1.3

0.3

8.0%

2.0%

5.5%

3.0%

Suppose you have a portfolio equally invested in four stocks. Each stocks expected return, standard deviations, and beta are in the following table. What is your portfolios beta? LO4

Stock A

Stock B

Stock C

Stock D

Expected Return

14%

10%

7%

1%

Standard Deviation

25%

12%

6%

6%

Beta

2.3

1.8

1.3

0.3

1.425

0.45

1.10

1.55

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