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You form a portfolio of stocks. Stock A has a beta of 2.5, Stock B has...

You form a portfolio of stocks. Stock A has a beta of 2.5, Stock B has a beta of 0.3, and Stock C has a beta of 2.2. If 0% of your portfolio is invested in stock A, and 0% of your stock is invested in Stock B, what is your portfolio beta?

(Enter your response to two decimal places ex: 1.23)

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Answer #1

Portfolio beta = (0 × 2.5) + (0 × 0.3) + (1 × 2.2)

Portfolio beta = 2.2

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