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You own a portfolio comprised of equal amounts of a risk-free asset and two stocks (so each asset is one-third of the portfolio). One of

You own a portfolio comprised of equal amounts of a risk-free asset and two stocks (so each asset is one-third of the portfolio). One of the stocks has a beta of 1.2 and the total portfolio is equally as risky as the market portfolio. What is the beta of the other stock?

A.

0.94
B.

1.0
C.

1.10
D.

1.80

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