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An investor put 40% of her money in Stock A and 60% in Stock B. Stock A has a beta of 1.2 and Stock B has a beta of 1.6. If the risk-free rate is 5% and the expected return on the market is 12%, what’s the investor’s expected return? (CAPM: Ri = Rf + B(Rm - Rf))

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Financial Management, Finance

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