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You own a portfolio comprised of a risk-free asset and a stock. The stock has a beta of 1.2 and the portfolio is equally as

You own a portfolio comprised of a risk-free asset and a stock. The stock has a beta of 1.2 and the portfolio is equally as risky as the market portfolio. What is the proportion of your portfolio in the stock? Hint: the beta coefficient of the market portfolio is 1.

A. 50%

B. 78.33%

C. 83.33%

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