You have invested 29% in Stock A, 33.2% in Stock B, and the remainder in the risk
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You have invested 29% in Stock A, 33.2% in Stock B, and the remainder in the risk free asset. You want a portfolio to be as risky as the market (i.e. you want the beta of your portfolio to equal 1). If Stock A has beta of 0.7, what is the beta of Stock B?
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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