You Would Like to Combine a Risky Stock with a Beta

question 76

Multiple Choice

You would like to combine a risky stock with a beta of 1.87 with U.S.Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market.What percentage of the portfolio should be invested in the risky asset?

• A)46.29%
• B)53.48%
• C)50.55%
• D)47.45%
• E)57.08%

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