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You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.7 and the

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.7 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

Multiple Choice

  • 1.36

  • 0.30

  • 1.24

  • 1.30

  • 0.35

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