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You have invested $30,000 in Stock A and $60,000 in Stock B. Stock A has an expected return of 9% and Stock B has an

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You have invested $30,000 in Stock A and $60,000 in Stock B. Stock A has an expected return of 9% and Stock B has an expected return of 12%. What is the expected return of your portfolio? Stocks Weights Apply Weights Value 30000 60000 E(Rstock) 9% B 12% Total a) 10.5% b) 11% c) 9% d) 12% You own stock that has a Beta of 147. US Treasury Bills are returning 1.2%. The return in the market is 8.5%. What is the expected return of your stock? Erm) = + [E(M) - 7] ETSTOCK) = 7+ BSTOCK[E(M) - ] Reward to Risk ratio = [E(STOCK) rt] / BSTOCK a) 11.93% b) 9.70% c) 12.50% d) 13.70%

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