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Question
You hold a portfolio made up of the following stocks:| Investment Value | Beta | |
| Stock L | $8,000 | 2.0 |
| Stock M | $18,000 | 1.5 |
| Stock N | $14,000 | .4 |
If the market's expected return is 14%, and the risk-free rate of return is 5%, what is the expected return of the portfolio?
A) 17.010%
B) 16.700%
C) 15.935%
D) 14.698%
Answer
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