Suppose you create a portfolio of Stock A and Stock B (with 30% in A and...

Question

Question

Suppose you create a portfolio of Stock A and Stock B (with 30% in A and 70% in B). Stock A has a beta of 0.65 and Stock B ha

Answer 1

Answer #1

Solution: 1.39 Portfolio beta 0.3*0.65+0.7*1.7 2.77% Expected return 2%*1.39

Answer 2

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