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Calculate the new portfolio required return

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Problem 1: If you formed a portfolio that consisted of 60% Goodman stock and 40% Landry stock, what would be its beta and its required return?

Problem 2: Suppose an investor wants to include Goodman Industries' stock in his or her portfolio. Stocks A, B, and C are currently in the portfolio, and their betas are 0.769, 0.985, and 1.423, respectively. Calculate the new portfolio's required return if it consists of 30% of Goodman, 20% of Stock A, 30% of Stock B, and 20% of Stock C.

Reference no: EM132998876

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