Question
You own a portfolio equally invested in three securities (T-bills and two stocks). The first is a risk-free asset of Treasury Bills (which has a
You own a portfolio equally invested in three securities (T-bills and two stocks). The first is a risk-free asset of Treasury Bills (which has a beta of zero) and two other stocks are Crackle Industries and Sparkle Enterprises. Crackle has a beta of 20. The total portfolio is equally as risky as the market (that is, your portfolio beta is 1.0). What must be the beta of Sparkle Enterprises?
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Day Trading Advanced Strategies
Authors: Andrew Pemberton
1st Edition
979-8682050369
