5.15. Exercise 5.14 assumed that the tangency portfolio allocated 80 percent to the S&P 500 index and

Question:

5.15. Exercise 5.14 assumed that the tangency portfolio allocated 80 percent to the S&P 500 index and 20 percent to the Nasdaq composite index. The beta for the S&P 500 index with this tangency portfolio is .54. Compute the beta of a portfolio that is 50 percent invested in the tangency portfolio and 50 percent invested in the S&P 500 index.

Fantastic news! We've Found the answer you've been seeking!