Problema stock has a beta of 12 and an expected return of, Ask an Expert

Accounting

Problem:

A stock has a beta of 1.2 and an expected return of 17 percent. A risk-free asset currently earns 5.1 percent. The beta of a portfolio comprised of these two assets is 0.85.

Required:

Question: What percentage of the portfolio is invested in the stock?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172599

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