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    Exam 5: The Mathematics of Diversification
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    Securities A, B, and C Have Betas of 1
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Securities A, B, and C Have Betas of 1

Question 6

Question 6

Multiple Choice

Securities A, B, and C have betas of 1.2, 1.3, and 1.7, respectively. What is the beta of an equally weighted portfolio of all three?


A) 1.15
B) 1.40
C) 1.55
D) 1.60

Correct Answer:

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