The risk free rate is 5 and the market risk premium is 8


You have a portfolio of $10,000 with a return of 12%. You are planning to sell one stock, currently worth $2,000 with a beta of 0.8 and replace it with $2,000 of a stock with a beta of 2.1. The risk free rate is 5% and the market risk premium is 8%. What is the new portfolio's return?

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Business Economics: The risk free rate is 5 and the market risk premium is 8
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