Question
Jimmy hasequally split his investments betweena risk-free asset and two stocks (so Jimmy has 1/3 of his portfolioinvested in each asset). One stock, Stock A,has
Jimmy hasequally split his investments betweena risk-free asset and two stocks (so Jimmy has 1/3 of his portfolioinvested in each asset). One stock, Stock A,has a beta of 1.41 and the portfolio's beta is equal to one.What must the beta be for Stock B, the other stock in Jimmy's portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Stock B's Beta ? ____
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
