Risk-level equivalent to that of overall market


Problem:

Your portfolio has a beta of 1.12. The portfolio consists of 20 percent U.S. Treasury bills, 50 percent stock A, and 30 percent stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?

Note: Please describe comprehensively and provide step by step solution.

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Finance Basics: Risk-level equivalent to that of overall market
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