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What Is the Beta of a Portfolio If 30 Percent

Question 56

Multiple Choice

What is the beta of a portfolio if 30 percent of the funds are invested in a risk-free asset,40 percent in the market portfolio,and the balance in a portfolio that has three times the risk of the market portfolio?


A) 0.4
B) 0.7
C) 1.3
D) 1.8

Correct Answer:

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