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You have a portfolio consisting only of 2 risky assets. Asset 1 has a return of 14%, and Asset 2 has a return of 12%.
You have a portfolio consisting only of 2 risky assets. Asset 1 has a return of 14%, and Asset 2 has a return of 12%. 70% of the Portfolio is in asset 1. The risk-free rate is 5% and the market risk premium is 7%, What is the beta of this portfolio?
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