Question
You would like to combine a risky stock with a beta of 1.88 with U.S. Treasury bills in such a way that the risk level
You would like to combine a risky stock with a beta of 1.88 with U.S. Treasury bills in
such a way that the risk level of the portfolio is equivalent to the risk level of the overall
market. What percentage of the portfolio should be invested in the risky stock?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
