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You currently own a portfolio valued at $40,000 that has a beta of 1.2. You have another $20,000 to invest and would like to invest
You currently own a portfolio valued at $40,000 that has a beta of 1.2. You have another $20,000 to invest and would like to invest it in a manner such that the risk of the new portfolio matches that of the overall market. What does the beta of the new security have to be?
a) 0.82 b) 0.25 c) 0.60 d) 0.44
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