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You Invest 50% of Your Money in Security a with a Beta

Question 32

Multiple Choice

You invest 50% of your money in security A with a beta of 1.6 and the rest of your money in security B with a beta of 0.7. The beta of the resulting portfolio is


A) 1.40.
B) 1.15.
C) 0.36.
D) 1.08.
E) 0.80.

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