You have no assets other than your investments in xyz and

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Using the following data:

Market Risk Premium=8%
Risk Free Rate=4%
Beta of XYZ stock=1.5
Beta of PDQ stock=2.0
Investment in XYZ stock=$50,000
Investment in PDQ stock=$100,000

You have no assets other than your investments in XYZ and PDQ stock.

What is the expected return of your portfolio? Show all work.

Reference no: EM13569509

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