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You are putting together a portfolio made up of four different stocks. You are considering two possible weighing's> Asset Beta 1st Port Wt Beta 2nd
| You are putting together a portfolio made up of four different stocks. You | |||||||
| are considering two possible weighing's> | |||||||
| Asset | Beta | 1st Port | Wt Beta | 2nd Port | Wt Beta | ||
| A | 3.5 | 25% | 40% | ||||
| B | 1.5 | 15% | 20% | ||||
| C | 1.0 | 45% | 25% | ||||
| D | -1.0 | 15% | 15% | ||||
| 100% | 100% | ||||||
| a. What is the beta on each portfolio? | |||||||
| b. Which portfolio is riskier? | |||||||
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Accountants Guide To Fraud Detection And Control
Authors: Howard R. Davia, Patrick C. Coggins, John C. Wideman, Joseph T. Kastantin
2nd Edition
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