There is a portfolio consisting of two stocks. Stock 1 has a beta of .5 and stock
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Question:
- There is a portfolio consisting of two stocks. Stock 1 has a beta of .5 and stock 2 has a beta of 2.0. The proportion of investment in stock 1 is 75%. The expected return on the market portfolio is 20%. The risk-free rate is 5%. The portfolio beta is
- 1
- 2.5
- 2.0
- .875
- .5. explain the work as well
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