Compute the tangency portfolio weights

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Reference no: EM131427114

a. Compute the betas of AOL, Microsoft, and Intel with respect to the tangency portfolio found in exercise 5.2.

Exercise 5.2

Compute the tangency portfolio weights assuming a risk-free asset yields 5 percent.

b. Then compute the beta of an equally weighted portfolio of the three stocks.

Reference no: EM131427114

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