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You are an investor in common stock, and you currently hold a well-diversified portfolio which has a required return of 12%, a beta of 1.2,
You are an investor in common stock, and you currently hold a well-diversified portfolio which has a required return of 12%, a beta of 1.2, and a total value of $6,000. You plan to increase your portfolio by buying 400 shares of AT&E at $10 a share. AT&E has a beta of 1.8. The current T-bill rate is 3%. What will be the required return of your portfolio after you purchase the new stock? Select one: a. 12.45% b. 12.35% c. 13.35% d. 13.80% e. 12.90% The FDA banning a specific product that a company sells is an example of: Select one: d a. Diversifiable risk that cannot be diversified away. b. Market risk that can be diversified away. c. Unsystematic risk that can be diversified away. d. Company-specific risk that cannot be diversified away. e. Systematic risk that cannot be diversified away
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