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Business, 18.12.2019 21:31 esnyderquintero

Both assets b and c plot on the sml. asset b has a beta of 1.3 and an expected return of 13.1%. asset c has a beta of .50 and an expected return of 7.50%. the risk-free rate is 4% and the expected return on the market portfolio is 11%. if you wish to hold a portfolio consisting of assets b and c, and have a portfolio beta equal to 1.0, what proportion of the portfolio must be in asset b?

a) 0.375
b) 0.50
c) 0.625
d) 0.75

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Both assets b and c plot on the sml. asset b has a beta of 1.3 and an expected return of 13.1%. asse...
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