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The beta of stock A is 0.35 and the beta of the overall market is 1.0. A portfolio is invested 60% in stock A and

The beta of stock A is 0.35 and the beta of the overall market is 1.0. A portfolio is invested 60% in stock A and 40% in the market. The risk-free return and market return are 6% and 17%, respectively. What is the fair (required) return on the portfolio according to CAPM? 1. 15.71% 2. 10.71% 3. 6.71% 4. 12.71%

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