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The expected return on a portfolio is 13.5%. The portfolio has a beta of 1.75. The market return is 10% and the risk-free rate is

The expected return on a portfolio is 13.5%. The portfolio has a beta of 1.75. The market return is 10% and the risk-free rate is 2%. Given this information,

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The investor should invest since the expected return is greater than the required return.

The investor should not invest since the expected return is less than the required return.

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