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Abrams builds a portfolio by investing in two stocks only: Google ( GOOG ) and Motorola ( MSI ) . According to the CAPM, the
Abrams builds a portfolio by investing in two stocks only: Google GOOG and Motorola MSI According to the CAPM, the expected risk premium ie the expected return minus the riskfree rate of GOOG is and the expected risk premium of MSI is The beta of GOOG is equal to If Abrams puts of his money in GOOG stock and in MSI stock, what is the approximate beta of his portfolio?
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