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Your Portfolio Has a Beta of 1

Question 80

Multiple Choice

Your portfolio has a beta of 1.18. The portfolio consists of 25% U.S. Treasury bills,40% in stock A,and 35% in stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?


A) 0
B) 1.42
C) 1.45
D) 1.63
E) 1.87

Correct Answer:

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