Question
There are only two securities in which you can invest: A risky stock and thee U.S. Treasury bills. The risky stock has a beta of
There are only two securities in which you can invest: A risky stock and thee U.S. Treasury bills. The risky stock has a beta of 1.68. You would like to combine the risky stock with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in the risky stock?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
