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Donald Gilmore Has $100,000 Invested in a 2-Stock Portfolio

Question 40

Multiple Choice

Donald Gilmore has $100,000 invested in a 2-stock portfolio.$35,000 is invested in Stock X and the remainder is invested in Stock Y.X's beta is 1.50 and Y's beta is 0.70.What is the portfolio's beta?


A) 0.65
B) 0.72
C) 0.80
D) 0.89
E) 0.98

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