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You Invest 55% of Your Money in Security a with a Beta

question 67

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You invest 55% of your money in security A with a beta of 1.4 and the rest of your money in security B with a beta of 0.9. The beta of the resulting portfolio is


Definitions:

Civilization

A complex human society characterized by the development of cities, social stratification, and a variety of cultural and technological advancements.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of an additional dollar of income that is paid in tax.

Progressive Tax

A tax system where the rate of taxation increases as the taxable income or amount increases, placing a higher burden on wealthier individuals.

Income

The financial gain (earned or unearned) accruing over a given period of time.

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