You own a portfolio equally invested in a risk-free asset


Question: You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.50 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. Round your answer to 2 decimal places (e.g., 32.16).)

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Finance Basics: You own a portfolio equally invested in a risk-free asset
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