Question
Maple desires that her portfolio beta be 1.1. Now, suppose her portfolio consists of Rs. 100 invested in Stock P with a beta of 1.4
Maple desires that her portfolio beta be 1.1. Now, suppose her portfolio consists of Rs. 100 invested in Stock P with a beta of 1.4 and Rs. 300 in Stock Q with a beta of 0.6. She has another Rs. 400 to invest and want to divide it between Stock R with a beta of 1.6 and a risk-free asset. How much should Maple invest in the risk-free asset to obtain her desired beta?
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Micro Entrepreneurship And Micro Enterprise Development In Malaysia Emerging Research And Opportunities
Authors: Abdullah Al Mamun , Mohammad Nurul Huda Mazumder, Noor Raihani Zainol, Rajennd Muniady
1st Edition
1522584730,1522584757
