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Assume the betas for securities A, B, and C are as shown her If you have a portfolio with $10,000 invested in each of Investment

Assume the betas for securities A, B, and C are as shown her

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If you have a portfolio with $10,000 invested in each of Investment A, B, and C,

what is your portfolio beta?

Using the portfolio beta and assuming a risk-free rate of 5%, what would you expect the return of your portfolio to be if the market earned 21.1% next year?

Declined 18.5%?

Beta Security A 1.58 B 0.58 C -0.23

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