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The following three stocks are available in the market:E ( R ) Stock A 1 0 . 5 % 1 . 2 0 Stock B
The following three stocks are available in the market:ERStock AStock BStock CMarketAssume the market model is valid.a Write the market model equation for each stock.b What is the return on a portfolio with weights of percent Stock A percent Stock B and percent Stock Cc Suppose the return on the market is percent and there are no unsystematic surprises in the returns. What is the return on each stock? What is the return on the portfolio?
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