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You are an investor in common stock, and you currently hold a well - diversified portfolio that has an expected return of 10 percent, a beta of 1.2, and a total value of $12, 000. You plan to increase your portfolio by buying 1, 000 shares of BEST at $15 a share. BEST has an expected return of 15 percent with a beta of 1.8. What will be the expected return and the beta of your portfolio after you purchase the new stock?

Financial Management, Finance

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