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An individual has $25,000 invested in a stock with a beta of 0.3 and another $80,000...

An individual has $25,000 invested in a stock with a beta of 0.3 and another $80,000 invested in a stock with a beta of 2.0. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

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Solution: Beta Stock A Stock B investment Amount Weight а b=a/105000 25000 23.80952% 80000 76.19048% 105000 weighted beta d=b

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