Question
In the CAPM, if the market is only comprised of two risky assets, stock A and stock B, which each has weight of 0.6 and
In the CAPM, if the market is only comprised of two risky assets, stock A and stock B, which each has weight of 0.6 and 0.4 of the market, then what are their betas?
Are their betas 0.6 and 0.4 accordingly?
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
