Question: Erin Behlen has a three stock portfolio and is interested in estimating its overall return next year. She has $25,000 invested in Forms Corp., which
Erin Behlen has a three stock portfolio and is interested in estimating its overall return next year. She has $25,000 invested in Forms Corp., which has a beta of 1.3, $75,000 in Crete Corp. with a beta of .8 and $20,000 in Stalls Corp, which has a beta of 1.45. The stock market is currently returning 10.2% and Treasury securities are yielding the risk free rate of 4.6%. What return should Erin anticipate on her portfolio?
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