Put money in four stocks in the dollar amounts

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1. An investor has put money in four stocks in the dollar amounts indicated and with betas specified. What is the portfolio beta? Stock A $3,794 with a beta of 1.14; stock B $6,472 with a beta of 1.17; stock C $4,475 with a beta of 0.95; and stock D $7,657 with a beta of 1.2. Show your answer rounded to two decimal points.

2. What is the required return for Dentrix Corporation? The risk-free rate is 3.2%, the risk premium is 8.3, the expected rate of inflation is 3.4% and the company can currently issue bonds at a YTM of 4.9%. The company's beta is estimated to be 1. round your answer to two decimal places and express your answer as a percentage, not as a decimal.

Reference no: EM131318250

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