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You own a portfolio that is equally invested in three assets: 1) the risk-free asset; 2) Stock 1; and 3) Stock 2.Stock 1 has a beta of 1.9 and the portfolio has the same risk as the market portfolio.
What is the beta of Stock 2 in the portfolio?
Highly Concrete
Describes something that is tangible, definite, and has a physical form or is clear and specific in manifestation or expression.
Highly Abstract
Pertaining to ideas or concepts that are complex, theoretical, and not connected to concrete experiences or physical objects.
Concept
A general idea or understanding that is not specific but can form the foundation of thought or knowledge.
Variables
Elements, factors, or characteristics that can vary within a study or experiment, potentially influencing the outcomes.
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