Question
You are contemplating investing in a portfolio made up of two stocks. A & B. The beta of Stock A is 1, and the Beta
You are contemplating investing in a portfolio made up of two stocks. A & B. The beta of Stock A is 1, and the Beta of Stock B is -1.3. Assume you plan to invest X% in Stock A, and the rest of your capital (that is 1-X) is in Stock B. What should X be so that the beta of the resulting portfolio is zero? ANSWER IS: 56.52. Just need help solving.
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
11th Global Edition
1292094184, 978-1292094182
