Question 19 1 points S C You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stock A is 1.42 and the beta of the portfolio is 1.0 what does the beta of stock B have to be? O 1.79 O 1.89 O 2.01 2.89

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
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Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 16P
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Question 19
1 points S
C
You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stock A is 1.42 and the beta of the portfolio is 1.0
what does the beta of stock B have to be?
O 1.79
O 1.89
O 2.01
2.89
Transcribed Image Text:Question 19 1 points S C You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stock A is 1.42 and the beta of the portfolio is 1.0 what does the beta of stock B have to be? O 1.79 O 1.89 O 2.01 2.89
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