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The expected return on the market portfolio is 15% and the risk-free rate of return is 6% and investment has a beta of 0.75 and
The expected return on the market portfolio is 15% and the risk-free rate of return is 6% and investment has a beta of 0.75 and you anticipate that based on past performance of the stock will return 13.5%
- This is a poor investment since it earns less than the market rate of return
- This investment is one that you would not accept
- This investment is one that you would accept
- We need more information to determine whether this is a good investment
- None of the above statements is correct
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