You can invest $100 in two investment funds. Fund A is highly pro-cyclical with a...
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You can invest $100 in two investment funds. Fund A is highly pro-cyclical with a market beta of 2, while fund B has a lower market beta of 0.5. You don't have access to any other financial asset. You decide to invest 60$ in fund A and the rest in fund B. What's the beta of your portfolio?
0.4
1
1.7
0.7
1.4
0
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