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You have are looking at an investment portfolio that will yield the following. Stock Probability Beta Expected Return 1 0.35 1.20 13% 2 0.37 0.75

You have are looking at an investment portfolio that will yield the following.

Stock

Probability

Beta

Expected Return

1

0.35

1.20

13%

2

0.37

0.75

18%

3

0.28

1.60

24%

If you, as the investor, have a required rate of return of 18.5%, would this portfolio be a good investment?

No, because the portfolio return is lower than my required rate of return

No, because the portfolio return and my required rate of return are equal

Yes, because the portfolio return is higher than my required rate of return

There is not enough information to answer the question

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