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You own 200 shares of Company A stock and 400 shares of Company B stock. You purchased these stocks two years ago, when both companys
You own 200 shares of Company A stock and 400 shares of Company B stock. You purchased these stocks two years ago, when both companys stocks were selling for $20 a share. Currently, Stock A is selling for $80 a share and stock B for $40 a share. If Company As beta is .8 and Company Bs beta is 1.5, what is your portfolios beta? (Assume these two stocks are your only investments.)
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