Question
You currently own a portfolio valued at $20,000 that has a beta of 1.2. You have another $10,000 to invest and would like to invest
You currently own a portfolio valued at $20,000 that has a beta of 1.2. You have another $10,000 to invest and would like to invest it in a manner such that the risk of the new portfolio matches that of the overall market. What does the beta of the new security have to be?
| 0.44 | ||
| 0.35 | ||
| 0.60 | ||
| 0.52 |
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Public Finance
Authors: Richard W. Tresch
3rd Edition
012415834X, 9780124158344
