What must the beta be for the other stock in your portfolio

Reference no: EM13272596

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.25 and the total portfolio is equally as risky as the market.

What must the beta be for the other stock in your portfolio?

Reference no: EM13272596

Questions Cloud

Obtain the maximum speed of mass : A 2.65 kg mass oscillates back and forth on a spring with a velocity vector that varies as a function of time according to the following v(t)=(3.95cm/s) sin [0.79 rad/s], What is the maximum speed of mass

Discuss how multiculturalism and diversity : Discuss how multiculturalism and diversity impact the application of those philosophical approaches by the criminal justice groups

What is the highest gain available under the conditions : A non inverting op-amp circuit with a gain of 96 V/V is found to have a 3-dB frequency of 8 kHz. For a particular system application, a bandwidth of 24 kHz is required. What is the highest gain available under these conditions

Determine the speed of the automobile : A trumpet player standing at rest plays a note of frequency 1200 hertz. Determine the speed of the automobile

What must the beta be for the other stock in your portfolio : You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.25 and the total portfolio is equally as risky as the market.

Determine the electron energy and momentum : An electron is moving with a velocity of 2*10^6 cm/s. Determine the electron energy (in eV)), momentum, and de Broglie wavelength (in angstrom).

What is the expected return on the portfolio : You own a portfolio that is 32 percent invested in Stock X, 20 percent in Stock Y, and 48 percent in Stock Z. The expected returns on these three stocks are 10 percent, 20 percent, and 16 percent, respectively. What is the expected return on the p..

Determine the magnitude of the average induced emf : a single circular loop with radius of 10.0cm lies in the plane of the paper while a uniform magnetic field points out of the paper, what is the magnitude of the average induced emf

Does the cdf change if clock hand has a propensity to stop : The loose minute hand of a clock is spun hard. The coordinates (x,y) of the point where the tip of the hand comes to rest is noted. Z is defined as the sgn function of the product of x and y, where sgn(t) is 1 if t>0, 0 if t=0 and -1 if t

User Account

All Pages