Your portfolio has a beta of 1.4. The portfolio consists of 30 percent U.S. Treasury bills and 50 percent of the market portfolio. The remainder of your portfolio is in stock B. What is the beta of stock B?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 4P: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market...
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Your portfolio has a beta of 1.4. The portfolio consists of 30 percent U.S. Treasury bills and 50 percent of the market portfolio. The remainder of your portfolio is in stock B. What is the beta of stock B? 

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