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A Portfolio Has an Expected Return of 11

Question 354

Multiple Choice

A portfolio has an expected return of 11.57%. The portfolio consists of stock A with an expected return of 8.6% and stock B with a beta of 1.28. The risk-free rate of return is 3% and the market risk
Premium is 8%. What is the portfolio weight of Stock A?


A) 31%
B) 32%
C) 34%
D) 36%
E) 37%

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