Apply the appropriate mathematical model

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You have $100,000 invested in a two-stock portfolio. $30,000 is invested in stock A and the remainder is invested stock B. A’s beta is 1.60 and B’s beta is 0.60. What is the portfolio’s beta (round your answer to two decimal places)? Solution: (i) Describe the assumptions related to the problem: (ii) Apply the appropriate mathematical model: (iii) Calculation:

Reference no: EM132044721

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