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You are looking at three stocks. Stock A has a beta of 0.7. Stock B has the same risk as the market portfolio. Stock C

You are looking at three stocks. Stock A has a beta of 0.7. Stock B has the same risk as the market portfolio. Stock C has a beta of 2.5. If you divide your funds equally among the three stocks, what is the portfolio beta?

a.0.7

b.1.1

c.1.7

d.1.4

e.0.8

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