Multiple Choice
A stock has a beta of 1.30 and an expected return of 16 percent. The risk-free rate is 5 percent. If a portfolio of the two assets has a beta of 1.50, what is the weight of the stock in the portfolio?
A) 105%
B) 111%
C) 126%
D) 119%
E) 115%
Correct Answer:
Verified
Correct Answer:
Verified
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