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Keith Johnson Has $100,000 Invested in a Two-Stock Portfolio

Question 140

Multiple Choice

Keith Johnson has $100,000 invested in a two-stock portfolio.Thirty thousand dollars is invested in Potts Manufacturing and the remainder is invested in Stohs Corporation.Potts' beta is 1.60 and Stohs' beta is 0.60.What is the portfolio's beta?


A) 0.66
B) 0.74
C) 0.82
D) 0.90

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