You own a portfolio equally invested in a risk-free asset and two stocks. One of has risky as has a beta of 1.6, and the total portfolios is equally as risky as the market. What's the beta of the second stock?

You own a portfolio equally invested in a risk-free asset and two stocks. One of has risky as has a beta of 1.6, and the total portfolios is equally as risky as the market. What's the beta of the second stock?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter6: Risk And Return

Section: Chapter Questions

Problem 14P

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