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You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stock

You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the s
Bernard co. has ( 9 % ) coupon bonds on the market that have 18 years left to maturity. The bonds will make annual payment


You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stock A is 1.23 and the beta of the portfolio is 1.02, what does the beta of stock B have to be? Bernard co. has 9% coupon bonds on the market that have 18 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 8%, what is the current bond price (in $ dollars)? (Assume the face value of the bond is $1,000) $_

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i We may begin by using the formula for a portfolios beta which is portfolio wA A wB B where wA wB a... blur-text-image

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