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Nico Wants to Invest All of His Money in Just

Question 39

Multiple Choice

Nico wants to invest all of his money in just two assets: the risk-free asset and the market portfolio. What is Nico's portfolio beta if he invests a quarter of his money in the market portfolio and the rest in the risk free asset?


A) 0.00
B) 0.25
C) 0.75
D) 1.00

Correct Answer:

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