Question
You have a $1,500 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 $1,500 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 1.70 and stock B has a beta of 1.30. Approximately how much needs to be invested in stock B if you want your portfolio beta to equal that of the overall market?
$762
$600
$1,062
$1,200
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
2nd Edition
0324015658, 9780324015652
