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1. Stock A Stock B Stock C Stock D 4% 8% 10% 6% 2.2 1.5 0.5 0.8 ei 4% 8% 4% 2% Use the table
1.
| Stock A | Stock B | Stock C | Stock D |
| 4% | 8% | 10% | 6% |
| 2.2 | 1.5 | 0.5 | 0.8 |
ei | 4% | 8% | 4% | 2% |
Use the table and the Single-Index Model for problems 14-17 to calculate the requested values for an equally weighted portfolio made up of the four assets, given an expected market return of 6% (Rm = 6%) and a market risk of 4% ( m = 4%).
What is the value of the portfolio's beta?
| a. | Less than or equal to 0.5 |
| b. | Greater than 0.5 but less than or equal to 1 |
| c. | Greater than 1 but less than or equal to 1.5 |
| d. | Greater than 1.5 but less than or equal to 2 |
| e. | Greater than 2 |
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