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You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. One stock has a beta of 1.14.

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You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. One stock has a beta of 1.14. What does the beta of the second stock have to be if you want the portfolio to be equally as risky as the overall market? Stock A has an expected rectum of 9.6 percent and a beta of 1.13. Stock B has an expected return of 13.5 percent. The stocks have equal reward-to-risk ratios. Currently, the risk-free rate is 3.5 percent. What is the beta of stock B

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