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Beta and Risk

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If you are relatively risk adverse, would you require a higher beta stock to induce you to invest than the beta required by a person more willing to take risks? Explain.
From the investment instruments in the simulation, is it possible to construct a portfolio that is risk free? Explain.

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Solution Summary

Answers 2 questions:
1) Would a person require a higher beta stock to induce him/her to invest than the beta required by a person more willing to take risks?
2) Is it possible to construct a portfolio that is risk free?

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