Question: Please answer step by step An investor is forming a portfolio by investing $56,230 in stock A that has a beta of 1.9, and $90,122

 Please answer step by step An investor is forming a portfolio

Please answer step by step

An investor is forming a portfolio by investing $56,230 in stock A that has a beta of 1.9, and $90,122 in stock B that has a beta of 0.6. The market risk premium is equal to 3.2% and Treasury bonds have a yield of 3.8%. What is the required rate of return on the investor's portfolio? 7.12% 7.01% 7.22% 6.92% 7.32%

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