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Use a risk-free rate of 3% and a market return of 7%. If your $500,000 portfolio has a beta of 1.1, should you add $50,000

Use a risk-free rate of 3% and a market return of 7%. If your $500,000 portfolio has a beta of 1.1, should you add $50,000 of a stock with a beta of 1.8 and an expected return of 11.0%?

  • . Depends on the market conditions

  • B. Yes

  • C. No

  • D. Not enough information to answer

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