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Use the following information to answer the question(s) below. Firm Portfolio Weight Volatility Correlation w/ Market Portfolio Taggart Transcontinental 0.25 14% 0.7 Wyatt Oil 0.35

Use the following information to answer the question(s) below.

Firm Portfolio Weight Volatility Correlation w/ Market Portfolio
Taggart Transcontinental 0.25 14% 0.7
Wyatt Oil 0.35 18% 0.6
Rearden Metal 0.40 15% 0.5

The volatility of the market portfolio is 10%, the expected return on the market is 12%, and the risk-free rate of interest is 4%. The beta for the portfolio of the three stocks is closest to:

1.02.

0.92.

1.00.

0.94.

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