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    Exam 9: The Capital Asset Pricing Model
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    You Invest $200 in Security a with a Beta of 1.4
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You Invest $200 in Security a with a Beta of 1.4

Question 48

Question 48

Multiple Choice

You invest $200 in security A with a beta of 1.4 and $800 in security B with a beta of 0.3. The beta of the resulting portfolio is


A) 1.40.
B) 1.00.
C) 0.52.
D) 1.08.
E) 0.80.

Correct Answer:

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