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1.(8 marks) Johnny's portfolio consists of $100,000 invested in stock X which has a beta of 0.8, $150,000 invested in stock Y which has a

1.(8 marks) Johnny's portfolio consists of $100,000 invested in stockXwhich has a beta of 0.8, $150,000 invested in stockYwhich has a beta of 1.2, and $50,000 invested in stockZwhich has a beta of 1.8.What is the portfolio beta according to CAPM?

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