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You are a portfolio manager and know the following information: - The current risk-free rate is 1.65% - The market's required rate of return is
You are a portfolio manager and know the following information:
- The current risk-free rate is 1.65%
- The market's required rate of return is 8.40%
- The required return on AMD is 16.35%
- The required return on DAL is 11.90%
- The market is in equilibrium
(a) Calculate the beta for AMD and DAL.
(b) Now you are creating portfolio including AMD, DAL, and the market. If you invest 45% of your portfolio in AMD, 25% in DAL, and the remaining 30% in the market, what is your portfolio's beta?
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