You currently hold a portfolio with a Beta of 1.50. If you add a new...
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Finance
You currently hold a portfolio with a Beta of 1.50. If you add a new stock to the portfolio that is as risky as the market overall, what can you say about your revised portfolio?
It is now less risky than the market.
Its Beta is 1.
Its Beta has decreased but is still riskier than the market overall.
It has a negative expected return.
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