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You Own a Portfolio Equally Invested in a Risk-Free Asset

Question 42

Multiple Choice

You own a portfolio equally invested in a risk-free asset and two stocks.One of the stocks has a beta of 1.9 and the total portfolio is equally as risky as the market.What is the beta of the second stock?


A) 0.75
B) 0.80
C) 0.94
D) 1.00
E) 1.10

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