Consider a portfolio constructed with a risky asset A and a risk-free asset. The portfolio has weight
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Consider a portfolio constructed with a risky asset A and a risk-free asset. The portfolio has weight of w in asset A. Asset A has expected return of 12% and beta of 1.25; risk-free rate is 4%. What is the beta of the portfolio if w is 120%?
Related Book For
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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