Question
You would like to combine a risky stock with a beta of 1.48 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 1.48 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?
32 percent
40 percent
54 percent
68 percent
60 percent
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
7th Edition
1473778913, 978-1473778917
