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A friend says that she expects to earn 12.00% on her portfolio with a beta of 1.75. You have a two-asset portfolio including stock X
A friend says that she expects to earn 12.00% on her portfolio with a beta of 1.75. You have a two-asset portfolio including stock X and a risk-free security. The expected return of stock X is 10.00% and the beta is 1.25. The expected return on the risk-free security is 3.50%. You construct a portfolio to match your friend's return. What is the beta of your portfolio? The beta of your portfolio is .(Round to two decimal places.)
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