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You own a portfolio equally invested in a risk - free asset and two stocks ( If one of the stocks has a beta of
You own a portfolio equally invested in a riskfree asset and two stocks If one of the stocks has a beta of and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? Hint: Remember that the market has a Beta; also remember that equally invested means that each asset has the same weight since there are assets, each asset's weight is or Enter the answer with decimals eg
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