Question
You have a $1,000 portfolio which is invested in stocks A and B plus a risk-free asset. $300 is invested in stock A. Stock A
You have a $1,000 portfolio which is invested in stocks A and B plus a risk-free asset. $300 is invested in stock A. Stock A has a beta of 1.3 and stock B has a beta of 0.7. How much needs to be invested in stock B if you want a portfolio beta of 0.8?
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
4th International Edition
013284298X, 9780132842983
