Question
What is the portfolio beta if 25% of your funds are invested in the market portfolio, 25% in an asset with twice as much risk
What is the portfolio beta if 25% of your funds are invested in the market portfolio, 25% in an asset with twice as much risk as the market portfolio, and the remainder in a risk-free asset?
portfolio beta = 0.25 * 1 + 0.25 * 2 + 0.5 * 0 = 0.75
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Cases In Healthcare Finance
Authors: George H. Pink, Paula H. Song
7th Edition
1640553177, 978-1640553170
