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 1.28 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 provide reasons to support your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166535

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