Problem 11-12 Calculating Portfolio Betas [LO 3] You own a portfolio equally invested in a...

50.1K

Verified Solution

Question

Finance

Problem 11-12 Calculating Portfolio Betas [LO 3]

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.21 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 and round your answer to 2 decimal places, e.g., 32.16.) Beta

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students