Assuming a portfolio with 5 risky stocks and t-bill weights of: -1.199127911. Weight Stock 1 0.266116741 Weight

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Assuming a portfolio with 5 risky stocks and t-bill weights of:

-1.199127911. Weight Stock 1

0.266116741 Weight Stock 2

-0.001224175 Weight Stock 3

1.032555449. Weight Stock 4

0.081418568 Weight Stock 5

0.820261329 Weight of T-bills

Which stock has the highest weight? How do you explain it?

Does any stock have a negative weight? Why?

Related Book For answer-question

Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Posted Date: Mar 18, 2023 02:06 AM

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Assuming a portfolio with 5 risky stocks and t-bill weights of: -1.199127911. Weight Stock 1 0.266116741 Weight

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Expert Answer:

The stock with the highest weight in the portfolio is Stock 4 with a weigh... View the full answer

Introduction to Corporate Finance What Companies Do

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