Question
You own a portfolio with 50% invested in a riskfree asset, 30% in stock A with a beta of 1.5 and 20% in stock B.
You own a portfolio with 50% invested in a riskfree asset, 30% in stock A with a beta of 1.5 and 20% in stock B. Your portfolio has the same expected return as the market portfolio. What is the beta of stock B? (The riskfree rate is 5%). Please show me formula or how to solve it. Thanks
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Financial Management For Decision Making
Authors: Harold Jr. Bierman, Seymour Smidt
1st Edition
1587982129, 9781587982125
