You have invested 75 of your wealth in stock 1 return on

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You hold a portfolio of two stocks. The first stock has a beta of 0.5 and the second stock has a beta of 2.0. You have invested 75% of your wealth in stock 1. Return on the market portfolio is 20%. The risk-free rate is 5%. The portfolio beta is

1. 1.
2. 2.5.
3. 2.0.
4. 0.875.
5. 0.5.

Reference no: EM13572446

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