Suppose you have a portfolio that has. $120 in stock A with a beta of 1.06, $480 in stock B with a beta of 0.63, and $360 in the market portfolio. You have another $240 to invest. You wish to achieve...


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Suppose you have a portfolio that has. $120 in stock A with a beta of 1.06, $480 in<br>stock B with a beta of 0.63, and $360 in the market portfolio. You have another $240 to<br>invest. You wish to achieve a beta for your whole portfolio to be the same as the risk-<br>free asset.<br>What is the beta of the added security?<br>The beta of the added security is<br>Note: Please retain at least 4 decimal places in your calculations and at least 2 decimal<br>places in your final answer.<br>

Extracted text: Suppose you have a portfolio that has. $120 in stock A with a beta of 1.06, $480 in stock B with a beta of 0.63, and $360 in the market portfolio. You have another $240 to invest. You wish to achieve a beta for your whole portfolio to be the same as the risk- free asset. What is the beta of the added security? The beta of the added security is Note: Please retain at least 4 decimal places in your calculations and at least 2 decimal places in your final answer.

Jun 02, 2022
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