Assume that the assistant to the manager using fundamental


The manager of Alpha Beta Funds is considering addition of the following stocks in his portfolio:

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a. Calculate the required rate of return for each stock.

b. Assume that the assistant to the manager, using fundamental analysis, develops estimates of expected rate of returns, labeled (Ri), for these stocks. Determine which stock(s) the manager of Alma Funds should include in his portfolio.

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Taxation: Assume that the assistant to the manager using fundamental
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