The expected return on market

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1. A stock has a beta of 1.55, the expected return on the market is 13 percent, and the risk-free rate is 7.15 percent. The expected return on this stock must be _____ percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

2. You own a portfolio that has $1,300 invested in Stock A and $1,300 invested in Stock B. If the expected returns on these stocks are 12 percent and 15 percent, respectively, the expected return on the portfolio is ______ percent. (Do not include the percent sign (%). Round your answer to 2 decimal place. (e.g., 32.16))

Reference no: EM131912059

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