Question
You want to construct a portfolio containing U.S. Treasury bills and two stocks. Its weight in T-bills is 38%, in Stock A is 27%, and
You want to construct a portfolio containing U.S. Treasury bills and two stocks. Its weight in T-bills is 38%, in Stock A is 27%, and in Stock B is 35%. If the beta of the Stock A is 1.50 and the beta of the portfolio is 0.92, what does the beta of Stock B have to be? Multiple Choice
1.77
1.18
2.21
1.47
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
7th Edition
1439080526, 9781439080528
