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10. A $1,000 portfolio is invested in two stocks (stock A & stock B) and one risk-free asset. Six hundred dollars is invested in stock

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10. A $1,000 portfolio is invested in two stocks (stock A & stock B) and one risk-free asset. Six hundred dollars is invested in stock A which has a beta of 1.4. The rest of the portfolio is divided evenly between stock B and the risk-free asset. What is the beta of stock B if the portfolio is equally as risky as the market? (a) 0.8 (b) 0.9 (c) 1.0 (d) 1.1 (e) 1.2

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