Question
Stock A has a beta of 1.4 and stock B has a beta of -.2. If you want your portfolio to be market neutral how
Stock A has a beta of 1.4 and stock B has a beta of -.2. If you want your portfolio to be "market neutral" how would you split your investment of $10,000 between the two stocks?
A)$5,000 in each stock B)Short $2,500 of stock B and buy $12,500 C) Buy $2,500 of A and $7,500 of B D)Buy $1,250 of A and $8,750 of B . E)None of the above
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Fundamental Accounting Principles Volume I
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
978-1260305821
