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1 . You own a portfolio equally invested in a risk - free asset and two stocks. If one of the stocks has a beta
You own a portfolio equally invested in a riskfree asset and two stocks. If one of the stocks has a beta of and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? Answer to two decimals.
A stock has an expected return of percent, the riskfree rate is percent, and the market risk premium is percent. What must the beta of this stock be Answer to two decimals.
Stock Y has a beta of and an expected return of percent. Stock Z has a beta of and an expected return of percent. What would the riskfree rate in percent have to be for the two stocks to be correctly priced relative to each other? Answer to two decimals.
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