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You want to create a portfolio with two stocks (Coke and Wal- Mart) and a Risk-Free Asset (T-Bills). The Beta of Coke is
Posted: Sun Jul 03, 2022 6:42 am
by answerhappygod
- You Want To Create A Portfolio With Two Stocks Coke And Wal Mart And A Risk Free Asset T Bills The Beta Of Coke Is 1 (112.43 KiB) Viewed 11 times
You want to create a portfolio with two stocks (Coke and Wal- Mart) and a Risk-Free Asset (T-Bills). The Beta of Coke is 1.50 and you want your portfolio to be as risky as the market portfolio. If you invest 25% in Coke, 35% in Wal-Mart, and the remaining in the Risk-Free Asset, what should be the Beta of Wal-Mart to achieve your desired portfolio? 0.59 1.79 1.09 0.93 1.51