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A stock has a beta of 12 and an expected return of 17

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Reference no: EM13568138

A stock has a beta of 1.2 and an expected return of 17 percent. A risk-free asset currently earns 5.1 percent. The beta of a portfolio comprised of these two assets is 0.85. What percentage of the portfolio is invested in the stock?

a. 71%

b. 77%

c. 84%

d. 89%

e. 92%

Reference no: EM13568138

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