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1. Suppose you held a well-diversified portfolio A (with a very large number of securities). The index model has been estimated for stock A is:

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1. Suppose you held a well-diversified portfolio A (with a very large number of securities). The index model has been estimated for stock A is: RA = 0.08 + 2.5 RM + A. The variance of market portfolio is 20%, The variance of portfolio A is A. 1.25 OB. 0.64 OC. 0.80 OD. 0.75

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