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Question:

Your portfolio has a beta of 1.12. The portfolio consists of 40 percent U.S. Treasury bills, 30 percent stock A, and 30 percent stock B. Stock A has a risk-level equivalent to that of the overall market.

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Question: What is the beta of stock B?

Note: Explain all steps comprehensively.

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  • Category:- Basic Finance
  • Reference No.:- M91148976

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