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You hold a portfolio that has an expected return of 11.55% and a beta of 1.25. You are in the process of buying 1.000 shares
You hold a portfolio that has an expected return of 11.55% and a beta of 1.25. You are in the process of buying 1.000 shares of ABC Corp at $10 a share and adding it to your portfolio. ABC has an expected return of 21.5% and a beta of 1.7. The total value of your current portfolio is $90.000. What will be the expected return and beta on the portfolio after the purchase of ABC stock? Do not round your intermediate calculations. a. 8.85%;1.38 b. 9.98%;1.45 c. 10.27%;1.15 d. 12.5%;1.30 e. 9.25%;1.23
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