Question
Stock M has a beta of .84 and expected return of 10.6%, Stock L has a beta of 1.23 and expected return of 13.25%. You
Stock M has a beta of .84 and expected return of 10.6%, Stock L has a beta of 1.23 and expected return of 13.25%. You want a portfolio with the same risk as the market. How much will you invest in each stock? What is the expected return of your portfolio?
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Local Public Finance
Authors: René Geissler, Gerhard Hammerschmid, Christian Raffer
1st Edition
3030674681, 978-3030674687
