You are combining the stocks of Amazon (AMZN) and Philip Morris (PM) to form a two-asset...
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You are combining the stocks of Amazon (AMZN) and Philip Morris (PM) to form a two-asset portfolio. Below, you find the regression outputs using the single factor model. Regression Statistics R-squared Std. Error Observations Intercept Market Return Regression Statistics R-squared Std. Error Observations Intercept Market Return 0.348 42.460 60 Coefficient Std. Error t-Stat 0.847 0.207 2.112 1.152 Stock: AMZN 0.225 41.644 60 Stock: PM Coefficient Std. Error t-Stat -0.156 0.839 0.841 0.205 2.492 5.568 -0.185 4.102 p-Value 0.016 0.000 p-Value 0.854 0.000 If you put 40% of your wealth into AMZN and the rest into PM, what is the market beta of your two-asset portfolio? You are combining the stocks of Amazon (AMZN) and Philip Morris (PM) to form a two-asset portfolio. Below, you find the regression outputs using the single factor model. Regression Statistics R-squared Std. Error Observations Intercept Market Return Regression Statistics R-squared Std. Error Observations Intercept Market Return 0.348 42.460 60 Coefficient Std. Error t-Stat 0.847 0.207 2.112 1.152 Stock: AMZN 0.225 41.644 60 Stock: PM Coefficient Std. Error t-Stat -0.156 0.839 0.841 0.205 2.492 5.568 -0.185 4.102 p-Value 0.016 0.000 p-Value 0.854 0.000 If you put 40% of your wealth into AMZN and the rest into PM, what is the market beta of your two-asset portfolio?
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