Question 191 points SCYou 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 1.0what does the beta of stock B have to be?O 1.79O 1.89O 2.012.89

solve the problem, we'll use the formula:The closest answer to 1.64 is 1.79. So, the correct choice…

Answered: Question 19 1 points S C You want to…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

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