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What happens to the expected portfolio return if the portfolio beta increases from 1 to 2, the risk-free rate decreases from 5% to 4%, and
What happens to the expected portfolio return if the portfolio beta increases from 1 to 2, the risk-free rate decreases from 5% to 4%, and the market risk premium remains at 8%? A. It increases from 12% to 19%. B. It increases from 13% to 16%. C. It increases from 13% to 20%. D. It increases from 12% to 16%.
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