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5) We have set up a welldiversified portfolio with stocks which average beta is 1.2. Assuming that the market standard deviation is 0.20, determine the

5) We have set up a welldiversified portfolio with stocks which average beta is 1.2. Assuming that the market standard deviation is 0.20, determine the risk of the portfolio (in terms standard deviation). a. 0.24 b. 6.0 c. 0.17 d. 0.20

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