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

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1. You own a portfolio equally invested in a riskfree asset and two stocks. If one of the stocks has a beta of 1.6 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

0.40

1.47

1.40

1.33

0.45

2. A stock has an expected return of 16 percent, its beta is 1.4, and the expected return on the market is 13 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)

-2.20%

5.77%

5.50%

5.72%

5.22%

Reference no: EM131916198

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