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Assume That You Hold a Well-Diversified Portfolio That Has an Expected

question 126

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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 Omega Corp at $10 a share and adding it to your portfolio. Omega 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 Omega stock?

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Presidential Election

A process by which citizens of the United States elect the President and Vice President, held every four years as determined by the U.S. Constitution.

Florida

A southeastern U.S. state known for its tropical climate, beaches, and diverse ecosystems.

Unhealthiness

The state or condition of being detrimental to health.

Predominantly

Mainly or for the most part; indicates that something is the majority or the most common.

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