If Acme Dynamite stock has a beta of .8 and a standard deviation of 15% and Splat Paintball stock has a beta of 1.3 and a standard deviation of 9%,what is the beta of a portfolio comprised of equal weights of both securities?
A) 24%
B) 12%
C) 18%
D) 1.05
E) 2.10
Correct Answer:
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