Bei and Jing are two firms in the business of manufacturing sportswear . The beta of bei and Jing are 1.2 and 1.3 respectively . Suppose you intend to invest a total of RM37500 in the stocks of the two firms and you wish to have a portfolio beta of 1.24. How much should you invest in each stock ?
Bei and Jing are two firms in the business of manufacturing sportswear . The beta of bei and Jing are 1.2 and 1.3 respectively . Suppose you intend to invest a total of RM37500 in the stocks of the two firms and you wish to have a portfolio beta of 1.24. How much should you invest in each stock ?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Bei and Jing are two firms in the business of manufacturing sportswear . The beta of bei and Jing are 1.2 and 1.3 respectively . Suppose you intend to invest a total of RM37500 in the stocks of the two firms and you wish to have a portfolio beta of 1.24. How much should you invest in each stock ?
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