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I have 2 separate beta related questions I am unsure how to solve. 1. You invest 66%, 12%, and 22% of your wealth into a
I have 2 separate beta related questions I am unsure how to solve.
1. You invest 66%, 12%, and 22% of your wealth into a stock, the market, and a risk-free asset, respectively. The beta of the stock is 0.9. What is the beta of the portfolio? (round answer to 3 decimal places)
2. Given a risk-free rate of 2.1%, a market risk premium of 8.7%, and an expected return of 17.4%, what is the beta of this stock? (round answer to 3 decimal places)
Thank you!
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