Question: Given the following data: Stock. Weight. Return. Standard Deviation. Beta A. 0.60. 10%. 20%. 0.80 B. 0.40. 20 30 1.20 Calculate: a. The portfolio return

Given the following data:

Stock. Weight. Return. Standard Deviation. Beta

A. 0.60. 10%. 20%. 0.80

B. 0.40. 20 30 1.20

Calculate:

a. The portfolio return

b. The portfolio total risk for rA,B = -1.0, -0.3, 0.0, 0.3, and 1.0.

c. Given that Rf = 8% and Rm = 12%, is the portfolio correctly priced? Explain.

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