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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%?
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. Depends on the market conditions
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B. Yes
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C. No
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D. Not enough information to answer
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