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    The Expected Return on Alpha Inc
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The Expected Return on Alpha Inc

Question 39

Question 39

Multiple Choice

The expected return on Alpha Inc.is 8 percent and the expected return on Beta Inc.is 24 percent.What is the trade-off between investing in Alpha and Beta if the portfolio weight in Alpha is increased by 1%?


A) -0.08%
B) -0.16%
C) -0.24%
D) -0.32%

Correct Answer:

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