You own a portfolio equally invested in a risk-free asset and two stocks (If one of the stocks has a beta of 0.66 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). Enter the answer with 4 decimals (e. g. 1.1234)
+4
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You own a portfolio equally invested in a risk-free asset and two stocks (If one of the stocks has a beta of 0.66 and the total portfolio ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.