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The beta of Asset A is 1 . 2 5 and that of Asset B is 0 . 8 . A trader forms a portfolio
The beta of Asset A is and that of Asset B is A trader forms a portfolio by investing of his Wealth in Assel A and in Asset B The variance of Asset B is of the variance of Asset A and the correlation between the two assets is If the variance of the portfolio is what are the variances of returns of the two assets. If the correlation of Asset A with the market portfolio is what is the correlation of Asset B with the market portfolio?
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