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An investor is forming a portfolio by investing $50,000 in stock A which has a beta of 1.50, and $50,000 in stock B which has

An investor is forming a portfolio by investing $50,000 in stock A which has a beta of 1.50, and $50,000 in stock B which has a beta of 1.0. The return on the market is equal to 10% and treasure bonds have a yield of 5% (rRF). Whats the portfolio beta?

a. 0.90

b. 1.20

c. 1.25

d. 1.50

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