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1. You invest $25,000 in Treasury notes and $50,000 in the market portfolio. If the risk-free rate equals 2% and the expected market risk premium

1. You invest $25,000 in Treasury notes and $50,000 in the market portfolio. If the risk-free rate equals 2% and the expected market risk premium is 6%, what is the expected return on your portfolio?
2. The risk-free rate equals 4%, and the expected return on the market is 10%. If a share’s expected return is 13%, what is the share's beta?

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1 The expected return on your portfolio is 8 25000 002 50000 006 2 The beta of the share is 15 ... blur-text-image

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