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you want to construct a portfolio containing U.S. treasury bills and two stocks. Its weight in T-bills is 37%. In stock A is 26% and
you want to construct a portfolio containing U.S. treasury bills and two stocks. Its weight in T-bills is 37%. In stock A is 26% and in stock B is 37%. If the beta of the stock A is 1.60 and the beta of the portfolio is 0.95 what does the beta of stock B have to be ?
A) 1.73
B)1.15
C) 2.16
D) 1.44
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