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You want to form a portfolio of stock A and stock B . Stock A has a beta of . 8 5 and stock B

You want to form a portfolio of stock A and stock B

.

Stock A has a beta of

. 85

and stock

B

has a beta of

1.6 .

If you invest $

6, 000

in stock A and $

4, 000

in stock

B,

what is the portfolio beta?

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