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You would like to combine a risky stock with a beta of 1.5 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 1.5 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? % Instruction: Enter your response as a percentage with two decimal places. For example, if your answer is 0.1213=12.13%, please only enter " 12.13 ", please do not enter " 0.1213 " or "12.13\%", the system may not recognize the \% sign. You may put negative signs if necessary, The common stock of CrisisGreat is expected to earn 11 percent in a recession, 8 percent in a normal economy, and lose 4 percent in a booming economy. The probability of a boom is 21 percent while the probability of a recession is 8 percent. What is the expected rate of return on this stock? % Instruction: Enter your response as a percentage with two decimal places. For example, if your answer is 0.1213=12.13%, please only enter "12.13", please do not enter " 0.1213 " or "12.13\%", the system may not recognize the \% sign. You may put negative signs if necessary
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