Consider the information given in the table below:

Stock	Expected Return	Beta
A	12%	1.2
B	16%	2.0
C	20%

If you created a portfolio using risky asset A and B only so that its expected return matched that of risky asset C, what would be weight of asset A in the portfolio?

Answer rating: 100% (QA)

To determine the weight of asset A in the portfolio we need to set up an equation using t... View the full answer