What is the portfolio beta

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A portfolio contains equal investments in 10 stocks. Four have a beta of 1.1; the remainder have a beta of 1.6. What is the portfolio beta?

A. 1.40

B. Greater than 1.40 because the portfolio is not completely diversified.

C. Less than 1.40 because diversification reduces beta.

D. None of the above

Reference no: EM132774612

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