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You want to create a portfolio with two stocks (Coke and Wal- Mart) and a Risk-Free Asset (T-Bills). The Beta of Coke is 1.50
You want to create a portfolio with two stocks (Coke and Wal- Mart) and a Risk-Free Asset (T-Bills). The Beta of Coke is 1.50 and you want your portfolio to be as risky as the market portfolio. If you invest 25% in Coke, 35% in Wal-Mart, and the remaining in the Risk-Free Asset, what should be the Beta of Wal-Mart to achieve your desired portfolio?
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
