What is beta of the market portfolio what is beta of the


Suppose that the market consists of only 2 stocks. Stock 1 has the market capitalization (ag- gregate stock market value of its shares) of $50 million and ? of 0.85. Stock 2 has the market capitalization of $75 million. What is stock 2 ??

Hint 1: What is beta of the market portfolio?

Hint 2: What is beta of the portfolio of two assets?

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