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Portfolios risk can be broken down into two types. risk is that part of a security's risk associated with random events, It can be eliminated

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Portfolios risk can be broken down into two types. risk is that part of a security's risk associated with random events, It can be eliminated by proper tiversification and is also known as company-specific risk. On the other hand, risk is the risk that remains in a portfollo after diversification has climinated all company -5pecific risk. Standard deviation is not a good measure of risk when a stock is heid in a portiolio. A stock's relevant risk is the risk that. remalns once a stock is in a diversified portfollo. Its contribution to the portfolio's market risk is measured by a stock's which shows the extent to which a given stock's returns move up and down with the stock market. An average stock's beta is that tends to move up and down in step with the general market. A stock with a beta 1 is considered to have low risk. 1 is considered to have high risk, while a stock with beta Quantitative Problem: You are holding a portfolio with the following investments and betas: The market's required return is 114 and the tikk-free rate is 5%. Whot in the portfolio's required returm? Do not round intermediate calculations. Round your answer to three decamal places

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