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Question
A portfolio of securities has a beta of 1.14. Given this, you know that:A. adding another security to the portfolio must lower the portfolio beta.
B. the portfolio has more risk than a risk-free asset but less risk than the market.
C. each of the securities in the portfolio has more risk than an average security.
D. the portfolio has 14 percent more risk than a risk-free security.
E. the expected return on the portfolio is greater than the expected market return.
Answer
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