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Use the following information to answer questions 21-22: two- part question The risk-free rate is 4% and the required return on the market is 12%.
Use the following information to answer questions 21-22:
two- part question The risk-free rate is 4% and the required return on the market is 12%.
#21
What is the required return of an asset with a beta of 1.5?
#22 What is the required return on a portfolio consisting of 40% of the asset above and the rest in an asset whose returns are perfectly correlated to the market?
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