Question
West Creek has $1000 to invest and borrows an additional $1000 at the risk-free rate, in order to invest a total of $2000 in a
West Creek has $1000 to invest and borrows an additional $1000 at the risk-free rate, in order to invest a total of $2000 in a stock that has E(R) = 6% and beta = 0.90. The risk-free rate is 1%. What is their portfolios beta?
0.80
1.80
1.60
0.90
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker
4th Edition
1284029867, 978-1284029864
