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(Solved): Portfolio AB has 50% invested in Stock A and 50% invested in Stock B. Stock A has an expected retur ...



Portfolio AB has 50% invested in Stock A and 50% invested in Stock B. Stock A has an expected return of 10% and a standard deviation of 20%. Stock B has an expected return of 13% and a standard deviation of 30%. The risk-free rate is 5% and the market risk premium (MRP), is 6%. Assume that the market is in equilibrium (This means the required return equals the expected return.) What is the Beta of Portfolio AB?



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