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Corporate Finance

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Moderate

Portfolio Beta

CORPFN-IJZ4BE

You have decided to invest one-third of your portfolio in Treasury bills, and another third in the S&P 500 index and the last one third in a diversified portfolio with a beta of 1.50.

What is the beta of your overall portfolio?

A

1.5

B

1.25

C

1.00

D

0.83