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You are considering to form a portfolio that includes stock ABC, stock DEF, and stock XYZ. To conduct the relevant analyses, you collect the following
You are considering to form a portfolio that includes stock ABC, stock DEF, and stock XYZ. To conduct the relevant analyses, you collect the following information for stock ABC, DEF and XYZ in the table below.
Stock | Amount Invested | Expected Return | Beta |
ABC | $ 1,000 | 0.0198 | 0.2 |
DEF | $ 5,000 | 0.1775 | 1.5 |
XYZ | $ 4,000 | 0.1255 | 1.2 |
What is the expected rate of return for your portfolio?
Please round your answer to the fourth decimal. For example, 0.1234.
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