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QUESTION 22 You are an investor in common stock, and you currently hold a well-diversified portfolio which has an expected return of 12 percent, a
QUESTION 22 You are an investor in common stock, and you currently hold a well-diversified portfolio which has an expected return of 12 percent, a bota of 1.2, and a total value of $9,000, You plan to increase your portfolio by buying 100 shares of AT&E at $10 a share. AT&E has an expected return of 20 percent with a beta of 2.0. What will be the expected return and the beta of your portfolio after you purchase the new stock? TTT Arial 3 (12pt)
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