Question: If we put a % of our wealth into asset X, with systematic risk of x, and b% of our wealth into asset Y, with

If we put a % of our wealth into asset X, with systematic risk of βx, and b% of our wealth into asset Y, with systematic risk of βy, then the beta of the resulting portfolio, βp, is simply the weighted average of the betas of individual securities: Prove the equation portfolio bate βP = a βx + b βy.

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