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2) (25 points) An investor divides her portfolio into three parts with equal weights: one part in a risk-free asset, one part in a market

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2) (25 points) An investor divides her portfolio into three parts with equal weights: one part in a risk-free asset, one part in a market portfolio, and one part in a stock with beta of 1.50. What is the beta of the investor's overall portfolio? (Hint: You should consider the beta values of the risk-free asset and the market portfolio)

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