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Equation Sheet*. You go on a trip to Las Vegas and decide to bet your company's entire 401K fund, $10million, on a game of Red
"Equation Sheet"*. You go on a trip to Las Vegas and decide to bet your company's entire 401K fund, $10million, on a game of "Red Card." The rules are simple. You place your bet and are dealt a single card. If the card is black you win, and in one year they send you a check for the amount of the bet plus 90%. If the card is red you lose your entire bet. The current risk-free rate is 6% and market risk premium is 5.5%. What is the Beta on a hand of Red Card? [5 points] Select one: a. 0.06 b. -0.055 c. 0 d. 1.90
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