Question
You want to construct a portfolio containing U.S. Treasury bills and two stocks. Its weight in T-bills is 16%, in Stock A is 40%, and
You want to construct a portfolio containing U.S. Treasury bills and two stocks. Its weight in T-bills is 16%, in Stock A is 40%, and in Stock B is 44%. If the beta of the Stock A is 1.30 and the beta of the portfolio is 0.92, what does the beta of Stock B have to be?
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
