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Stock n and a risk-free security that has a portfolio beta

Stock M has a beta of 1.2. The market risk premium is 7.8 percent and the risk-free rate is 3.6 percent. Assume you compile a portfolio equally invested in Stock M, Stock N, and a risk-free security that has a portfolio beta equal to the overall market. What is the expected return on the portfolio?

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Finance Basics: Stock n and a risk-free security that has a portfolio beta

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