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An investor has $1 million invested in a 2-stock portfolio. $250,000 is invested in Potts Manufacturing and the remainder is invested in Stohs Corporation. Potts'

An investor has $1 million invested in a 2-stock portfolio. $250,000 is invested in Potts Manufacturing and the remainder is invested in Stohs Corporation. Potts' beta is 2.0 and Stohs beta is 0.8. What is the portfolio's beta?

1.1

1.4

2.8

1.40

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