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Angelique Coughlan is looking to invest in a portfolio of 2 stocks, FCX (Freeport-McMoRan Inc.) in the Copper sector and NEM (Newmont Mining Corporation) in
Angelique Coughlan is looking to invest in a portfolio of 2 stocks, FCX (Freeport-McMoRan Inc.) in the Copper sector and NEM (Newmont Mining Corporation) in the Gold sector. They have betas of 0.22 and -0.58 respectively, given that the market is expected to return 5.00% and the yield on a 10-year treasury is 3.90%what are the appropriate weights on the portfolio to form a zero-beta portfolio? (place your answers in the boxes) (hint: the fact that there are 2 assets is key)
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