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Problem:

A stock has a beta of 1.56 and an expected return of 17.3 percent. A risk-free asset currently earns 5.1 percent. If a portfolio of the two assets has a beta of 1.06,

Required:

Question: What are the portfolio weights? Including risk free weight and stock weight.

Note: Please provide step by step solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91147903

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