.   If you have $30,000 invested in each of two stocks and $20,000 invested in each...

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.   If you have $30,000 invested in each of two stocksand $20,000 invested in each of another three stocks and the betason the stocks above are 0.8, 1.1, 1.0, 1.2 and 1.4, respectively,what is the beta of your portfolio, and what isthe required return on the portfolio if therisk-free rate is 4.6% and the return on the market portfolio is10.4%? What are the risk premiums for themarket and for yourportfolio?

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Beta of portfolio is weighted average beta of each of the stocks Stock Amount invested Weights of stock Beta Weighted average 1 30000 2500 30000120000 080 020 2 30000 2500 30000120000 110 028 3 20000 1667 20000120000 100 017 4 20000 1667    See Answer
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.   If you have $30,000 invested in each of two stocksand $20,000 invested in each of another three stocks and the betason the stocks above are 0.8, 1.1, 1.0, 1.2 and 1.4, respectively,what is the beta of your portfolio, and what isthe required return on the portfolio if therisk-free rate is 4.6% and the return on the market portfolio is10.4%? What are the risk premiums for themarket and for yourportfolio?

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