Question
Assume that the treasury yield is currently 2.3%, the expected market risk premium 6.7%, and the equity betas for firms A and B are 1.111
Assume that the treasury yield is currently 2.3%, the expected market risk premium 6.7%, and the equity betas for firms A and B are 1.111 and 2.222. You create a portfolio by investing $5,000 in shares of firm A and $5,000 in shares of firm B.
What is your portfolios beta?
Group of answer choices
1.00
1.67
3.33
0.5
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Introduction To Financial Management
Authors: Sudanshu Pandeya
1st Edition
1774695316, 978-1774695319
