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The = 0.79 for network service provider VeriSign, Inc. (VRSN), and = 1.34 for video game supplier Electronic Arts Inc. (ERTS). If the market return
The = 0.79 for network service provider VeriSign, Inc. (VRSN), and = 1.34 for video game supplier Electronic Arts Inc. (ERTS). If the market return is expected to be 10% and the risk-free rate is 4%, calculate the expected return for both stocks, and for a portfolio with 50% invested in VRSN and 50% invested in ERTS. Also calculate the portfolio beta and the expected return on the portfolio given that beta.
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