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3. A portfolio has a beta of 1.24. The portfolio consists of 20 percent U.S. Treasury bills, 30 percent Stock A, and 50 percent Stock

A portfolio has a beta of 1.24. The portfolio consists of 20 percent U.S. Treasury bills, 30 percent Stock A, and 50 percent Stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?

1.79

2.02

1.94

1.98

1.88

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