Question
A stock has a beta of 1.50 and an expected return of 15.4 percent. A risk-free asset currently earns 3.7 percent. The beta of a
A stock has a beta of 1.50 and an expected return of 15.4 percent. A risk-free asset currently earns 3.7 percent. The beta of a portfolio comprised of these two assets is .90. What percentage of the portfolio is invested in the stock?
| A. | 90% | |
| B. | 70% | |
| C. | 60% | |
| D. | 80% |
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Value Investing
Authors: Mike Hartley
1st Edition
979-8864443309
