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Business, 06.12.2019 06:31 Harms

Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. you are in the process of buying 1,000 shares of garden corp at $10 a share and adding it to your portfolio. garden corp has an expected return of 13.0% and a beta of 1.50. the total value of your current portfolio is $90,000. what will the expected return and beta on the portfolio be after the purchase of the garden corp stock?

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