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Your investment club has only two stocks in its portfolio. $10,000 is invested in a stock...

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Finance

Your investment club has only two stocks in its portfolio.$10,000 is invested in a stock with a beta of 0.5, and $75,000 isinvested in a stock with a beta of 1.5. What is the portfolio'sbeta? Round your answer to two decimal places.

Required Rate of Return

AA Corporation’s stock has a beta of 1.1. The risk-free rate is2.5% and the expected return on the market is 11%. What is therequired rate of return on AA's stock? Round your answer to twodecimal places.

Required Rate of Return

Suppose rRF = 5%, rM = 12%, andrA = 14%.

  1. Calculate Stock A's beta. Round your answer to two decimalplaces.

  2. If Stock A's beta were 1.5, then what would be A's new requiredrate of return? Round your answer to two decimal places.

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