You want a portfolio as risky as the market. Given the information below, compute the weight of
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Question:
You want a portfolio as risky as the market. Given the information below, compute the weight of the risk-free asset.
Enter your answer in percentages, rounded off to two decimal points. Do not enter % in the answer box.
Asset | Investment | Beta |
Stock A | 40.00% | 1.4 |
Stock B | 25.00% | 0.9 |
Stock C | ? | 2.25 |
Risk-free asset | ? | ? |
Related Book For
Introduction to Finance Markets, Investments and Financial Management
ISBN: 978-1119398288
16th edition
Authors: Ronald W. Melicher, Edgar A. Norton
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