In a given portfolio, replacing an existing investment with a lower beta investment results in _____.?
A. ?an increase in the expected rate of rate return of the portfolio
B. ?a decrease in the actual rate of return of the portfolio
C. ?a decrease in the required rate of return of the portfolio
D. ?an increase in the systematic risk of the portfolio
E. ?the portfolio beta moving toward 1.0
Answer: C
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What will be an ideal response?