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You own $2,500 of Diner's Corp stock that has a beta of 2.6. You also own $2,500 of Comm Corp (beta = 1.1) and $5,000
You own $2,500 of Diner's Corp stock that has a beta of 2.6. You also own $2,500 of Comm Corp (beta = 1.1) and $5,000 of Airlines Corp (beta = 0.3). Assume that the market return will be 10 percent and the risk-free rate is 4 percent. What is the risk premium of the portfolio?
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