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True or False, if False, why? 13. The portfolio beta is calculated as the sum of the weighted average of the betas of each investment

True or False, if False, why?

13. The portfolio beta is calculated as the sum of the weighted average of the betas of each investment in the portfolio.

14. An efficient portfolio can contain assets which themselves do not lie on the efficient frontier.

15. Diversification cannot work if all stocks contained in the portfolio have identical amount of risks.

16. Increasing absolute risk aversion implies increasing relative risk aversion.

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