Your portfolio has a beta of 1.18 and consists of 15 percent US Treasury bills, 30 percent

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Your portfolio has a beta of 1.18 and consists of 15 percent US Treasury bills, 30 percent A-shares, and 55 percent B-shares. A-shares have a level of risk equivalent to the general market. What is the beta of stock B?

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Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: May 10, 2023 04:24 AM

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Your portfolio has a beta of 1.18 and consists of 15 percent US Treasury bills, 30 percent

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We can use the following formula to find the beta of stock B Po... View the full answer

Corporate Finance A Focused Approach

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