You Want to Construct a Portfolio Containing Equal Amounts of U.S.Treasury

question 53

Multiple Choice

You want to construct a portfolio containing equal amounts of U.S.Treasury bills and two stocks.If the beta of the first stock is 1.23 and the beta of the portfolio is 1.0,what does the beta of the second stock have to be?

• A) 0.77
• B) 1.23
• C) 0.23
• D) 1.77

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