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Mr. Ahsan is holding a $100 million portfolio that consists of the following six stocks:
Stock | Amount invested | Beta |
A | $10 million | 1.5 |
B | $5 million | 1.2 |
C | $18 million | 0.75 |
D | $13 million | 1.3 |
E | $24 million | 0.8 |
F | $30 million | 1.4 |
The portfolio has a required return of 13 percent, and the market risk premium is 5.5 percent.
Calculate the required return on Stock A, B, C, D, E, and F
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