You own a portfolio equally invested in the risk-free asset and two stocks. One of the stocks has a beta of 1.30 and the beta of your portfolio is 0.90. What is the beta of the other stock?
A) 1.52
B) 1.63
C) 1.57
D) 1.40
E) 1.46

Question

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The Answer of You own a portfolio equally invested in the risk-free asset and two stocks. One of the stocks has a beta of 1.30 and the beta of your portfolio is 0.90. What is the beta of the other stock?
A) 1.52
B) 1.63
C) 1.57
D) 1.40
E) 1.46

You Own a Portfolio Equally Invested in the Risk-Free Asset