What will be the expected return and beta of portfolio

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Problem 1: You are an investor in common stock, and you currently hold a well-diversified portfolio which has an expected return of 15 percent, a beta of 1.3, and a total value of $80,000. You plan to increase your portfolio by buying 200 shares of AT&E at $100 per share. AT&E has an expected return of 20 percent with a beta of 2.0. What will be the expected return and beta of your portfolio after you purchase the new stock?

Reference no: EM132834170

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