Problemyou own a portfolio equally invested in a risk-free, Ask an Expert

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Problem:

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.22 and the total portfolio is equally as risky as the market.

Required:

Question: What must the beta be for the other stock in your portfolio?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148545

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