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The risk-free rate is 1% and the market risk premium is 5%. What is the required return on a portfolio of stocks A and B
The risk-free rate is 1% and the market risk premium is 5%. What is the required return on a portfolio of stocks A and B given the information below:
| Stock | Weight | Beta |
| A | 30% | 0.6 |
| B | 70% | 1.5 |
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
