Determine the beta of the firm

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An investor has $5,000 invested in a stock which has an estimated beta of 1.2, and another $15,000 invested in stock of the firm for which he works. The risk free rate is 6% and the market risk premium is also 6%. The investor calculates that the required rate of return on his total ($20,000) portfolio is 15%. Determine the beta of the firm for which he works?

Reference no: EM1373166

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