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You form a portfolio by investing equally in A (beta=0.8), B (beta=1.2), the risk-free asset, and the market portfolio. What is your portfolio beta? The
You form a portfolio by investing equally in A (beta=0.8), B (beta=1.2), the risk-free asset, and the market portfolio. What is your portfolio beta? The answer is 0.75 but I don't know how to get that answer. Please show how to get it.
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