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A. Given the following information:

Stock Amount invested Beta Return

X $42,000 .40 10%
Y $10,000 1.30 25%
Z $8,000 .80 5%
M $3,000 1.00 50%

Calculate the expected return of the portfolio

Calculate the risk of the portfolio

Which of the following stock would you expect to give a return higher than the market? Explain your answer.

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