You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.16 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? Answer to two decimals.
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- You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.41 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)You own a portfolio equally invested in a risk-free asset and two stocks (If one of the stocks has a beta of 1.68 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? (Hint: Remember that the market has a Beta=1; also remember that equally invested means that each asset has the same weight- since there are 3 assets, each asset's weight is 1/3 or 0.3333. Use 0.333333, and not only 0.33, sorry, calculation is sensitive to it). Enter the answer with 4 decimals (e.g. 1.1234)Question: You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.27 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?
- You have a portfolio that is equally invested in Stock F with a beta of 1.15, Stock G with a beta of 1.52, and the risk-free asset. What is the beta of your portfolio? How do I solve this?You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stock A is 1.18 and the beta of the portfolio is 0.9, what does the beta of stock B have to be?You have a portfolio that is equally invested in Stock F with a beta of .95, Stock G with a beta of 1.37, and the market. What is the beta of your portfolio?