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7. Assume that you have superior stock-picking ability. All else equal, how does the weight that you place on the active portfolio (relative to the

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7. Assume that you have superior stock-picking ability. All else equal, how does the weight that you place on the active portfolio (relative to the passive portfolio) change as the beta of the active portfolio changes? A. Increase B. Decrease C. Stay the same D. Not enough information to comment 8. Assume that you have superior stock-picking ability. All else equal, how does the weight that you place on the active portfolio (relative to the passive portfolio) change as the unsystematic risk of the active portfolio changes? A. Increase B. Decrease C. Stay the same D. Not enough information to comment

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