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Active portion of the optimal risky portfolio

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Boeing (BA) has a beta of 1.7, standard deviation of 31%, and expected alpha of 2%. Intel (INTC) has a beta of 0.8, standard deviation of 17%, and expected alpha of 1%. The standard deviation of the S&P500 is 17%. Use the Index Model.

What is the beta of the active portion of the optimal risky portfolio?

Reference no: EM132483072

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