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The following table contains information on the expected return, beta, market value of equity, and book value of equity for 9 stocks: NFLX TSLA DIS
The following table contains information on the expected return, beta, market value of equity, and book value of equity for 9 stocks: NFLX TSLA DIS PFE PSX XEL TGT SBUX SC E[C] 9.8% 5.4% 12.6% 7.0% 16.3% 19.1% 15.2% 11.2% 14.1 Beta 2.0 0.4 0.7 0.3 1.2 0.2 0.6 0.9 2.4 Market Value of 132.4 73.8 255.3 206.4 53.0 31.6 79.3 99.8 28. Equity Book Value of Equity 5.2 14.9 88.8 43.4 24.9 12.2 15.3 5.8 1. What is the expected return on an equally-weighted portfolio comprised of the three stocks with the lowest betas? O 11.7% O 16.0% 13.4% 10.5%
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