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Using the Capital Asset Pricing Model, determine the required rate of return on the following 2-stock portfolio given the following market and stock data: Risk-free rate of return = 4% Market rate of return (return on an average risk security)= 9% Stock A: Investment of $10,000 with a beta of 1.3 Stock B: Investment of $20,000 with a beta of 0.90. SHOW ALL WORK FOR FULL CREDIT.

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Financial Management, Finance

Category:- Financial Management
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