Question: Assume that the single factor APT model applies, and a portfolio exists such that 1/3 of the funds are invested in Security A, 1/4 of

Assume that the single factor APT model applies, and a portfolio exists such that 1/3 of the funds are invested in Security A, 1/4 of the funds are invested in Security B and the rest in the risk-free asset. Security A has a beta of 1.5, Security B has a beta of 1.0. What is the portfolio beta?

if a decimal point appears, round it to two decimal places.

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