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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 Use and not only sorry, calculation is sensitive to it Enter the answer with decimals eg
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