Weight of each=(1/3)
Portfolio beta=Respective beta*Respective weight
1=(1/3*1.23)+(1/3*Beta of other stock)+(1/3*0)[Beta of market=1;Beta of risk-free assets=0]
1=0.41+(1/3*Beta of other stock)
Beta of other stock=(1-0.41)*3
=1.77
You own a portfolio equally invested in a risk-free asset and two stocks. If one of...
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