Question
A $2,000 portfolio is invested in three stocks and one risk-free asset. Five hundred dollars is invested in stock A which has a beta of
A $2,000 portfolio is invested in three stocks and one risk-free asset. Five hundred dollars is invested in stock A which has a beta of 1.3. Six hundred dollars is invested in Stock B which has a beta of .80. The rest of the portfolio is divided evenly between stock C and the risk-free asset. What is the beta of stock C if the portfolio is equally as risky as the market?
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
