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Youve collected data on the betas of various mutual funds. Each fund and its beta is listed below: Mutual Fund

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You’ve collected data on the betas of various mutual funds. Each fund and its beta is listed below:

Mutual Fund               Beta
Weak Fund....................0.23
Fido Fund......................0.77
Vanwatch......................1.05
Temper..........................1.33


a. Estimate the beta of your fund holdings if you held equal proportions of each of the above funds.

b. Estimate the beta of your fund holdings if you had 20 percent of your investments in Weak Fund, 40 percent in Fido Fund, 15 percent in Vanwatch, and the remainder in Temper.

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a Beta of portfolio 25 …View the full answer


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Related Book For  answer-question
Introduction to Finance Markets, Investments and Financial Management

Introduction to Finance Markets, Investments and Financial Management

ISBN: 978-1119398288

16th edition

Authors: Ronald W. Melicher, Edgar A. Norton

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Question Details
Chapter # 12
Section: Questions and Problems
Problem: 4
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Question Posted: June 12, 2019 10:43:25
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