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The appropriate expected return of Tasaco is (Round to two decimal places.) The appropriate expected return of LBM is (Round to two decimal places.) The

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The appropriate expected return of Tasaco is (Round to two decimal places.) The appropriate expected return of LBM is (Round to two decimal places.) The appropriate expected return of Exxos is (Round to two decimal places.) 13. (Security market line) Your father just learned from his financial advisor that his retirement portfolio has a beta of 1.84. He has turned to you to explain to him what this means. Specifically, describe what you would expect to happen to the value of his retirement fund if the following were to occur: a. The value of the market portfolio rises by 6 percent. b. The value of the market portfolio drops by 6 percent. c. Is your father's retirement portfolio more or less risky than the market portfolio? Explain. a. If the value of the market portfolio rises by 6%, then the value of your father's retirement fund should decrease/increase by (Select from the drop-down menu and round the answer to two decimal places.) b. If the value of the market portfolio drops by 6%, then the value of your father's retirement fund should decrease/increase by (Select from the drop-down menu and round the answer to two decimal places.) c. Your father's retirement portfolio is less/more risky than the market portfolio because your father's retirement portfolio beta, it's systematic risk, is greater/less than the market's portfolio beta. (Select from the drop-down menus.) 14. Security market line rpu are considering the construction of a portfolio comprised of equal indelstments in each of fou r dfferent stocks. The betas for each stock are found below: a. What is the portfolio beta for your proposed investment portioliu: h. How would a 25 percent increase in the expected return on the market impact the expected return

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