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You have $1000 to invest in stock A and stock B. Stock A has a beta equal to 1.25 and stock B has a beta equal to 0.45 If you wish to have a portfolio beta equal to 1, how much money should you invest in stocks A and B respectively You invest $650 in stock ABC and $450 in stock XYZ. Stock ABC beta is 1.5 and stock XYZ beta is 2.2. The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on your portfolio You have $1000 to invest in stock A and stock B. Stock A has a beta equal to 1.25 and stock B has a beta equal to 0.45 If you wish to have a portfolio beta equal to 1, how much money should you invest in stocks A and B respectively You invest $650 in stock ABC and $450 in stock XYZ. Stock ABC beta is 1.5 and stock XYZ beta is 2.2. The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on your portfolio
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Step 1 of 2 1 The amount of money invested stock A and B is as follow Amount of A X Amount of B 1000 ... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1118845899
3rd edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Posted Date:
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