Question
Suppose there are only two stocks in the stock market. Stock A sells for $50 and has 100 shares outstanding. Stock B sells for $100
Suppose there are only two stocks in the stock market. Stock A sells for $50 and has 100 shares outstanding. Stock B sells for $100 and has 150 shares outstanding. Assume that there is a risk-free asset. What is the market portfolio in this economy? If the beta of stock A is 1.8, what is the beta of stock B?
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Managing in a Global Economy Demystifying International Macroeconomics
Authors: John E. Marthinsen
2nd edition
128505542X, 978-1305176157, 1305176154, 978-1285055428
