You would like to combine a risky share with a beta of 1.5 with 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 Treasury bills?
A)25%
B)33%
C)50%
D)67%
E)75%

Question

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The Answer of You would like to combine a risky share with a beta of 1.5 with 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 Treasury bills?
A)25%
B)33%
C)50%
D)67%
E)75%

You Would Like to Combine a Risky Share with a Beta