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Problem:

Your portfolio has a beta of 1.78. The portfolio consists of 18 percent U.S. Treasury bills, 32 percent stock A, and 50 percent stock B. Stock A has a risk level equivalent to that of the overall market.

Required:

Question: What is the beta of stock B?

Note: Explain all calculation and formulas.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91148004

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