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An Investor Divides Her Portfolio into Three Equal Parts,with One

Question 3

Multiple Choice

An investor divides her portfolio into three equal parts,with one part in Treasury bills,one part in a market index,and one part in a mutual fund with beta of 1.50.What is the beta of the investor's overall portfolio?


A) 0.83
B) 1.00
C) 1.17
D) 1.25

Correct Answer:

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