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    Portfolio Weights and Diversification for Karen's portfolio

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    Karen's portfolio which has a beta of 1.02, consists of three mutual funds: an international fund, a utility fund, and a technology fund. The international fund has a beta of 1.5 and makes up to 20% of the portfolio. The utility fund has a beta of 05, and the technology fund has a beta of 1.3, If the portfolio's beta equals 1.02, how much of Karen's portofolio is invested in the technolgy field?

    A financial planner is examining the portfolios held by several of her clients. The portfolios are described below. Identify which portfolio is less likely to have the smallest standard deviation-

    A portfolio consisting of about 30 technology stocks
    A portfolio consisting of Microsoft, Apple, Computer, and Google
    A portfolio consisting of about 3 randomly selected stocks
    A portfolio containing only Microsoft stock
    A portfolio consisting of about 30 randomly selected stocks

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    Solution Preview

    Karen's portfolio which has a beta of 1.02, consists of three mutual funds: an international fund, a utility fund, and a technology fund. The international fund has a beta of 1.5 and makes up to 20% of the portfolio. The utility fund has a beta of 05, and the technology fund has a beta of 1.3, If the portfolio's beta equals 1.02, how much of Karen's portofolio is invested in the ...

    Solution Summary

    Portfolio weights and diversification for Karen's portfolio are examined. A financial planner is examined.

    $2.19

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