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Beta

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Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $75,000 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42. What is his portfolio's beta?

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Solution Summary

The solution determines the portfolio beta using the numbers given. Details steps are shown which makes it easy for a student to follow along. Overall, an excellent response.

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