Question
a stock has a beta of 1.2 and an expected return of 12 percent. A risk-free asset earns 7 percent. If a portfolio of the
a stock has a beta of 1.2 and an expected return of 12 percent. A risk-free asset earns 7 percent. If a portfolio of the two assets has a beta of 0.9, what is the weight of the risk-free asset? Express the weight as a whole percentage rounded to the nearest basis point.
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Multinational Finance Evaluating Opportunities Costs and Risks of Operations
Authors: Kirt C. Butler
5th edition
1118270126, 978-1118285169, 1118285166, 978-1-119-2034, 978-1118270127
