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What will be the expected return and the beta

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Reference no: EM131938517

You are an investor in common stocks, and you currently hold a well-diversified portfolio that has an expected return of 6.5%, a beta of 1.05, and a total value of $90,000. You plan to increase your portfolio by buying 300 shares of Castle & Co. at $100 a share. Castle has an expected return of 7.30% with a beta of 1.25. What will be the expected return and the beta of your portfolio after you purchase the new stock? Please include the steps in order for better understanding.

Reference no: EM131938517

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