Question
ou want to construct a portfolio containing U.S. Treasury bills and two stocks. Its weight in T-bills is 28%, in Stock A is 30%, and
ou want to construct a portfolio containing U.S. Treasury bills and two stocks. Its weight in T-bills is 28%, in Stock A is 30%, and in Stock B is 42%. If the beta of the Stock A is 1.40 and the beta of the portfolio is 0.98, what does the beta of Stock B have to be?
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
