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1-What must be the beta of a portfolio with E(rp)=18%, if f=6% and E(rm)=14% ?...

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1-What must be the beta of a portfolio with E(rp)=18%, if f=6% and E(rm)=14% ? E(Ra)=Rf+[(E(Rm)Ri)B] 2- Are the following true or false? Explain. a. Stocks with a beta of zero offer an expected rate of return of zero. b. The CAPM implies that investors require a higher return to hold highly volatile securities. c. You can construct a portfolio with beta of. 75 by investing. 75 of the investment budgets in T-bills and the remainder in the market portfolio

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