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You are a superannuation Fund Manager for Mercantile Mutuals holding a portfolio of five stocks each with a corresponding beta measuring equity risk: The portfolio
You are a superannuation Fund Manager for Mercantile Mutuals holding a portfolio of five stocks each with a corresponding beta measuring equity risk: The portfolio has a required return of 13.00%, and the market risk premium is presently 6.50%. Q1. What is the beta of the portfolio? (Give answer to 4 decimal places) Q2. What is the risk free rate? % (Give answer as % to 2 decimal places) Q3. What is the required return on Stock E? % (Give answer as % to 2 decimal places)
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