An investor is forming a portfolio by investing 55000 in


An investor is forming a portfolio by investing $55,000 in stock A that has a beta of 1.33, and $75,000 in stock B that has a beta of 0.95. The market risk premium is equal to 6.30% and Treasury bonds have a yield of 4.25%. What is the required rate of return on the investor’s portfolio?

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Financial Management: An investor is forming a portfolio by investing 55000 in
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