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You have $300,000 to invest. You are planning to allocate $120,000 to Stock A and the rest to Stock B. Stock A has expected returns
You have $300,000 to invest. You are planning to allocate $120,000 to Stock A and the rest to Stock B. Stock A has expected returns of 12% and Stock B has a Beta of 1.4. The risk free rate is 6% and the market risk premium is 7%. What is the expected returns on your portfolio?
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