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You hold a portfolio that has an expected return of 1 0 . 8 5 % and a beta of 1 . 3 4 .

You hold a portfolio that has an expected return of 10.85% and a beta of 1.34. 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 retum 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.
O a.8.85%; 1.30
b.11.92%; 1.38
.9.25%; 1.23
d.9.98%; 1.45
e.10.27%; 1.15

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