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You have a portfolio of stocks that consists of the following: Number of Shares Price Beta Value Weight 200 $100 1.0 .20 300 .90 $20,000

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You have a portfolio of stocks that consists of the following: Number of Shares Price Beta Value Weight 200 $100 1.0 .20 300 .90 $20,000 $24,000 $56,000 $80 $56 .24 1000 1.2 .56 Risk-Free rate = 2.00% Risk Premium on the market = 5.00% The expected return on the portfolio is: Between 6.00% and 7.00% Cannot be determined with this information Between 7.00% and 8.00% Greater than 8.00% Less than 6.00%

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