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You have been managing a $5 million portfolio that has a beta of 1.25 and a required rate of return of 12%. The current risk-free

You have been managing a $5 million portfolio that has a beta of 1.25 and a required rate of return of 12%. The current risk-free rate is 5.25%. Assume that you receive another $500,000 which you invest in a stock with a beta of 0.75. What would be the beta and return of your $5.5 million portfolio?

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