You Would Like to Combine a Risky Stock with a Beta

question 50

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 stock?

• A)54.15 percent
• B)53.48 percent
• C)55.09 percent
• D)52.91 percent
• E)54.67 percent