What is the expected return on john revised portfolio

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Reference no: EM133340884

Question: John Smith has the following portfolio:

Stock Investment Beta

A $50,000 1.40

B $150,000 0.80

C $125,000 1.00

D $50,000 1.20

He plans to sell Stock A and replace it with Stock E which has a beta of 0.80. If the government bond rate is 4% and the market return is 10%, what is the expected return on John's revised portfolio?

Reference no: EM133340884

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