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You are currently only invested in the Natasha Fund (aside from risk-free securities). It has an expected return of 14% with a volatility of 19%.

You are currently only invested in the Natasha Fund (aside from risk-free securities). It has an expected return of 14% with a volatility of 19%. Currently, the risk-free rate of interest is 3.8% . Your broker suggests that you add Hannah Corporation to your portfolio. Hannah Corporation has an expected return of 21%, a volatility of 60%, and a correlation of 0 (zero) with the Natasha Fund.

60% is in the Natasha Fund and 40% is in Hannah stock.

You decide to follow your finance professor's advice and reduce your exposure to Hannah. Now Hannah represents 14.464% of your risky portfolio, with the rest in the Natasha fund. Recalculate the required return on Hannah stock. Is this the correct amount of Hannah stock to hold?(Round all intermediate values to five decimal places as needed.)

What is the required return of Hannahs stock in a percentage

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