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You have three stocks in your portfolio. Stock A is twice as risky as the market, Stock B is half as risky as the market
You have three stocks in your portfolio. Stock A is twice as risky as the market, Stock B is half as risky as the market and Stock C is exactly as risky as the market. You have 50%, 30%, and 20% in stocks A, B, and C, respectively. The expected return on the market is 11.4% and the risk-free rate is 1%. If you have $36,000 in your portfolio today, how much can you expect to have in one year?
A)$32,975
B)$40,104
C)$41,414
D)$56,428
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