Question
Your portfolio has a beta of 1.17. The portfolio consists of 16 percent U.S. Treasury bills, 31 percent in stock A, and 53 percent in
Your portfolio has a beta of 1.17. The portfolio consists of 16 percent U.S. Treasury bills, 31 percent in stock A, and 53 percent in stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?
1.23
1.62
0.53
1.06
1.37
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
