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Determining the risk-free security

A $36,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 1.29 while the beta of stock B is 0.90. One-half of the portfolio is invested in the risk-free security. How much is invested in stock A if the beta of the portfolio is 0.58?

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Finance Basics: Determining the risk-free security

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the risk-free security

Reference No:- TGS0675395

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Replenished the petty cash fund

Q : Find costs of retained earnings and new common stock

Q : Types of models of addiction

Q : Explain how do operatign leases differ from capital leases

Q : Determining the risk-free security

Q : Purpose of these one-day events

Q : Find the internal rate of return on the investments

Q : Risk premium on jpm common stock

Q : Prepare a classified balance sheet for merrell enterprises

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the risk-free security

Reference No:- TGS0675395

Recent Questions Asked Finance Basics

Q : Replenished the petty cash fund

Q : Find costs of retained earnings and new common stock

Q : Types of models of addiction

Q : Explain how do operatign leases differ from capital leases

Q : Determining the risk-free security

Q : Purpose of these one-day events

Q : Find the internal rate of return on the investments

Q : Risk premium on jpm common stock

Q : Prepare a classified balance sheet for merrell enterprises

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