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You have invested $10,000 in stock A, which has a beta of 1.25 and an expectedrate of return of 12%. The current market risk premium
You have invested $10,000 in stock A, which has a beta of 1.25 and an expectedrate of return of 12%. The current market risk premium is 5%. Assume that you invest another $10,000 in stock B that has a beta of .85. What will be theexpectedreturn on your $20,000 portfolio?
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