Multiple Choice
You want to develop a portfolio containing U.S. Treasury bills and two stocks that is equally as risky as the market. The securities will be equally weighted. If the beta of the first stock is 1.23, what does the beta of the second stock have to be?
A) 0.77
B) 1.23
C) 0.23
D) 1.77
Correct Answer:
Verified
Correct Answer:
Verified
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