You would like to combine a very risky stock with a beta of 1.85 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?
You would like to combine a very risky stock with a beta of 1.85 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?
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