An investor has $10,000 to invest in 5 different stocks. Information regarding the 5 stocks...
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An investor has $10,000 to invest in 5 different stocks. Information regarding the 5 stocks is shown in the table below: Stock Expected Return Beta Amount Invested A 9.00% 1.00 $1,634.00 B 10.00% 1.20 $2,513.00 C 6.50% 0.70 $2,881.00 D 8.00% 0.90 $852.00 E 12.00% 1.40 $2,120.00 Also, the risk free rate for the economy is currently 2.00%. Given the above information, what is the market risk premium for investors (assuming the expected portfolio return is equal to the required portfolio return)
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