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You would like to create a portfolio that is equally invested in a risk-free asset and 3 stocks. One stock has a beta of .87.
You would like to create a portfolio that is equally invested in a risk-free asset and 3 stocks. One stock has a beta of .87. Another stock has the same beta as the market. What does the beta of the third stock have to be if you want the portfolio to be equally as risky as the overall market?
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