Determine the beta and the require return

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An investor currently has all of his wealth in Treasury bills. She is considering investing 40 percent of her funds in PQS, whose beta is 1.5, with the remaining left in Treasury bills. The expected risk-free rate (Treasury bills) is 7 percent and the market risk premium is 10.4 percent. Determine the beta and the require return on the proposed portfolio.

Reference no: EM13269575

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