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You Form a Portfolio by Investing Equally in a (Beta

Question 354

Multiple Choice

You form a portfolio by investing equally in A (beta = 0.8) , B (beta = 1.2) , the risk-free asset, and the market portfolio. What is your portfolio beta?


A) 0.67
B) 0.75
C) 0.95
D) 1.12
E) 1.15

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