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Risks in Common Stocks
Select a portfolio of common stocks in five companies whose
stock is traded on the New York Stock Exchange (NYSE). Base your selection of
stocks on your own personal willingness to take risks. Look up the beta of each
company. Using equal weights, compute the portfolio beta, showing your work.

Discuss how the portfolio beta compares to your own
willingness to take risks.

Discuss whether you would rather hold an individual stock or
a portfolio of stocks.

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