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You Invest $600 in Security a with a Beta of 1.2

Question 10

Multiple Choice

You invest $600 in security A with a beta of 1.2 and $400 in security B with a beta of 0.90.The beta of the resulting portfolio is

A) 1.40
B) 1.00
C) 0.36
D) 1.08
E) 0.80

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