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Problem:

Stock J has a beta of 1.20 and an expected return of 13.16 percent, while Stock K has a beta of .75 and an expected return of 10.10 percent. You want a portfolio with the same risk as the market.

Task:

Question 1: What is the expected return of your portfolio? Please explain in detail and also provide step by step solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91146501

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