A friend says she expects to earn 1350 on her portfolio, Ask an Expert

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A friend says she expects to earn 13.50% on her portfolio with a beta of 1.50. You have a two-asset portfolio including stock x and a risk free security. The expected return of stock x is 10.50 and the beta is 1.10. The expected return on the risk free security is 3.50%. You construct a portfolio to match your friends return. What is the beta of your portfolio?

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Financial Management, Finance

Category:- Financial Management
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