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A portfolio contains equal investments in 12 stocks. Six have a beta of 1.4; the remainder have a beta of 1.1. What is the portfolio
A portfolio contains equal investments in 12 stocks. Six have a beta of 1.4; the remainder have a beta of 1.1. What is the portfolio beta? Multiple Choice 1.25 Greater than 1.25 because the portfolio is not completely diversified. Less than 1.25 because diversification reduces beta
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