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  3. during the period 20x1–20x3, art levinsen corpor

During the period 20X1–20X3, Art Levinsen Corporation's closest competitor had stock price activity that resulted...

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Accounting

  1. During the period 20X1–20X3, Art Levinsen Corporation's closest competitor had stock price activity that resulted in an average stock return of 25.7% with a standard deviation of 19.275%. This competitor’s beta is 1.20. The average rate on U.S. Treasury bonds was 5% and is considered to be the risk free rate of return

  3.  Question: 
If an investor held a portfolio consisting of equal percentages of the market portfolio, the firm’s stock, and the competitor’s stock, what would the beta of this portfolio be? 
HINT: Market beta is always = 1.00

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