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QUESTION 13 You invest $600 in a security with a beta of 1.5 and $400 in another security with a beta of 0.90. The beta
QUESTION 13 You invest $600 in a security with a beta of 1.5 and $400 in another security with a beta of 0.90. The beta of the resulting portfolio is - A. 1.36 OB. 1.40 0 0.80 OD. 1.26 E. 1.00 QUESTION 14 Your personal opinion is that a security has an expected rate of return of 0.12. It has a beta of 1.5. The risk-free rate is 0.05 and the market expected rate of return is 0.09. According to the Capital Asset Pricing Model, this security is A. cannot be determined from data provided B. fairly priced C. overpriced D. can either be overpriced or underpriced but not fairly priced O E. underpriced
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