Question
A stock has a beta of 1.60 and an expected return of 10 percent. A risk-free asset currently earns 2.4 percent. If a portfolio of
A stock has a beta of 1.60 and an expected return of 10 percent. A risk-free asset currently earns 2.4 percent.
| If a portfolio of the two assets has a beta of 3.20, what are the portfolio weights? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.) |
Weight of stock?
Risk Free Weight?
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International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
