Question
You own a portfolio equally invested in a risk free asset and two stocks. One of the stocks has a beta of 1.26 and the
You own a portfolio equally invested in a risk free asset and two stocks. One of the stocks has a beta of 1.26 and the total portfolio is equally as risky as the market. What must the beta be for the other stock in your portfolio? (round answer to 2 decimal places, e.g., 65.21%)
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
