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Stock A has a beta of 1.2 and an expected return of 10%. The risk-free asset currently earns 4%. If a portfolio of the two
Stock A has a beta of 1.2 and an expected return of 10%. The risk-free asset currently earns 4%. If a portfolio of the two assets has an expected return of 6%, what is the beta of the portfolio? A) 0.3 B) 0.4 C) 0.5 D) 0.6 E) 0.7
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