Your portfolio has a beta of 1.05. The portfolio consists of 30 percent Treasury bills, 50 percent stock A, and 20 percent stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?
Your portfolio has a beta of 1.05. The portfolio consists of 30 percent Treasury bills, 50 percent stock A, and 20 percent stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 3P: Two-Asset Portfolio
Stock A has an expected return of 12% and a standard deviation of 40%. Stock B...
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Your portfolio has a beta of 1.05. The portfolio consists of 30 percent Treasury bills, 50 percent stock A, and 20 percent stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?
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