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Question
You own three stocks which have betas of 1.16, 1.34, and 1.02. You would like to add a fourth security such that your portfolio beta will match that of the market. Given this situation, the new security:A. must have a beta of 1.0.
B. must have a beta of zero.
C. could be a U.S. Treasury bill.
D. could have any beta greater than 1.0.
E. must have a portfolio weight of 50 percent or more.
Answer
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Related questions
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