What is the return on portfolio

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1. You have a portfolio of two stocks held in equal weights. The ABC stock has a beta of 1.4, and the XYZ stock has a beta of -0.1. The risk free rate is 4% and the market risk premium is 7%. What is the return on the portfolio? Enter as a percent and round to the nearest hundredth of a percent.

2. You buy 1,000 shares IBM stock for $101 and 500 shares of Starbucks stock for $90. IBM stock goes down in value to $94/share, while Starbucks increases to $98/share. You do not sell or buy any additional shares. What is the return on your portfolio?

Enter as a percent and round to the nearest tenth of a percent.

Reference no: EM131537081

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