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You hold the positions in the table below. What is the beta of your portfolio? If you expect the market to earn 12 percent and the risk-free rate is 3.5 percent, what is the required return of the portfolio? (LG3)

PRICE SHARES BETA

Amazon.com $40.80 100 3.8
Family Dollar Stores 30.10 150 1.2
McKesson Corp 57.40 75 0.4
Schering-Plough Corp 23.80 200 0

 

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