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6. The market portfolio has an expected return of 10%. Risk-free bonds currently have yields (interest rates) of 4.4%. You want to keep 30%
6. The market portfolio has an expected return of 10%. Risk-free bonds currently have yields (interest rates) of 4.4%. You want to keep 30% of your portfolio invested in these risk-free bonds. The rest of your portfolio will be equally divided between a fund that invests in large-company stocks, which has a beta of 1.2, and a fund that invests in start-up companies, which has a beta of 2.0. Given your investments, what will be the beta of your whole portfolio? A. 0.96 B. 1.12 C. 1.42 D. 1.60 E. 1.90
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