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II. Suppose you have a portfolio of IBM and Dell with a beta of 1.3 and 0.8, respectively. If you put 50% of your money

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II. Suppose you have a portfolio of IBM and Dell with a beta of 1.3 and 0.8, respectively. If you put 50% of your money in IBM, 40% in Dell and 10% in the risk-free asset, calculate and interpret the beta of your portfolio. (4 marks) III. An investor wishes to: (i) have a shareholding in only one company, Jordan, with a beta of 1.67, and (ii) have a portfolio with a beta value of one. What is your advice as to how the investor can achieve these twin objectives? (4 marks)

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