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Using the index model, if the beta of your actively managed portfolio is greater than 1, you should: a.Increase the proportion of your portfolio invested
Using the index model, if the beta of your actively managed portfolio is greater than 1, you should:
a.Increase the proportion of your portfolio invested in the market index to improve your diversification
b. Decrease the proportion of your portfolio invested in the market index to increase your alpha
c.Increase the proportion of your portfolio invested in the market index to increase your alpha
d. Decrease the proportion of your portfolio invested in the market index to improve your diversification
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