What is expected return of your portfolio

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Reference no: EM131300162

Use the following data:

         Market risk premium = 10%

         Risk-free rate = 2%

         Beta of XYZ stock = 1.6

         Beta of PDQ stock = 2.4

         Investment in XYZ stock = $15,000

         Investment in PDQ stock = $60,000

         You have no assets other than your investments in XYZ and PDQ stock.

What is the expected return of your portfolio? Show all work.

Reference no: EM131300162

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