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You Would Like to Combine a Risky Share with a Beta

Question 62

Multiple Choice

You would like to combine a risky share with a beta of 1.5 with Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market.What percentage of the portfolio should be invested in Treasury bills?


A) 25%
B) 33%
C) 50%
D) 67%
E) 75%

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