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Suppose you have on risk-free asset and one risky stock in your portfolio. The risk-free asset has an expected return of 5.2 percent. The risky

Suppose you have on risk-free asset and one risky stock in your portfolio. The risk-free asset has an expected return of 5.2 percent. The risky asset has a beta of 1.5 and an expected return of 17.3 percent. What is the expected return on the portfolio if the portfolio beta is 1.05?

 


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