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Question 4 A) Explain what beta measures and how investors can use beta. (10marks) B) Dr. Jackson's portfolio consists of four stocks: AZMN, 35%, beta

Question 4

A) Explain what beta measures and how investors can use beta.

(10marks)

B) Dr. Jackson's portfolio consists of four stocks: AZMN, 35%, beta 2.4; MKR, 20%, beta 1.6; ABDE, 25%, beta 1.8; and SBUK, 20%, beta 2.1. Compute Dr. Z's portfolio beta. Does he seem to be a conservative or aggressive investor? explain

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