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You Want Your Portfolio Beta to Be 1

question 60

Multiple Choice

You want your portfolio beta to be 1.20.Currently, your portfolio consists of €100 invested in share A with a beta of 1.4 and €300 in share B with a beta of .6.You have another €400 to invest and
Want to divide it between an asset with a beta of 1.6 and a risk-free asset.How much should you
Invest in the risk-free asset?


Definitions:

Termination

The process of formally ending or concluding an agreement, process, or employment.

Culmination Stage

The final stage or point of an activity, process, or period where everything comes together or is completed.

Integrative Learning

An educational approach that emphasizes making connections across disciplines, fostering a holistic understanding of subjects.

Self-Authored Learning

An approach to learning where individuals take charge of their education, drawing on personal experiences and inner knowledge.

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