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A stock of company A has an expected return of 17.5% and a beta of 1.65. Another asset which is risk free is earning 3.25%
A stock of company A has an expected return of 17.5% and a beta of 1.65. Another asset which is risk free is earning 3.25%
- What is the expected return on a portfolio that is comprised of 1/2 the high-risk stock and 1/2 the risk-free asset?
- Calculate the weights of each of these if they are the only 2 holdings in a portfolio which has a beta of 1.00
- If the portfolio of these two holdings earned 10%, what would be the beta of the portfolio
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Authors: Greg Middleton
1st Edition
979-8866955046
