Part B: Risk and Return 1 Karen Wallace currently has an investment portfolio that contains...

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Accounting

Part B: Risk and Return 1 Karen Wallace currently has an investment portfolio that contains 10 stocks that have a total value equal to $160,000. The portfolio has a beta (b) equal to 1.0. Karen wants to invest an additional $40,000 in a stock with b = 2.0. After Karen adds the new stock to her portfolio, what will be the portfolio's beta? 2 Given the following information, compute the expected return, standard deviation and coefficient of variation for Company B.:

Probability

0.2

0.3

0.5

Return

2.0%

12.0%

5.0%

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