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Currently, the risk-free return is 3 percent, and the expected market rate of return is 9 percent. What is the expected return of the following three-stock portfolio? (NOTE: The expected market rate of return is 9%, and this is NOT the market risk premium.)
Amount Invested; Beta
$350,000; 1.0
$250,000; 0.2
$400,000; 2.5
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