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Business, 29.08.2019 17:10 Hiadamcom

Assume that you hold a well-diversified portfolio that has an expected return of 12.0% and a beta of 1.20. you are in the process of buying 100 shares of alpha corp at $10 a share and adding it to your portfolio. alpha has an expected return of 15.0% and a beta of 2.00. the total value of your current portfolio is $9,000. what will the expected return and beta on the portfolio be after the purchase of the alpha stock?

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