BU Hotel Inc has a beta of 2 6 and SHA Hotel Inc has a beta of 0 90 The return on the market is 10 and the risk free rate is 3 If you wish to hold a portfolio consisting of BU and SHA Hotel and have a portfolio beta equal to 1 5, what proportion of the portfolio must be in BU Hotel What is the expe...

To determine the proportion of the portfolio that must be in BU Hotel and the expected return on the ...

BU Hotel Inc. has a beta of 2.6 and SHA Hotel Inc. has a beta of 0.90.

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BU Hotel Inc. has a beta of 2.6 and SHA Hotel Inc. has a beta of 0.90. The return on the market is 10% and the risk-free rate is 3%. If you wish to hold a portfolio consisting of BU and SHA Hotel and have a portfolio beta equal to 1.5, what proportion of the portfolio must be in BU Hotel? What is the expected return on the portfolio?

Posted Date: May 11, 2024 05:30 AM

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BU Hotel Inc. has a beta of 2.6 and SHA Hotel Inc. has a beta of 0.90.

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