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    Portfolio beta

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    Susan has $100,000 invested in a 2-stock portfolio. $30,000 is invested in Pierce Manufacturing and the remainder is invested in Stone Corporation. Pierces' beta is 1.60 and Stone' beta is 0.60. What is the portfolio's beta?

    A. 0.60
    B. 0.66
    C. 0.74
    D. 0.82
    E. 0.90

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    Solution Summary

    The solution explains how to calculate the portfolio beta.