Portfolio is equivalent to the risk level of overall market

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You would like to combine a risky stock with a beta of 1.88 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in the risky stock? Describe the steps in your solution and the reasoning behind your approach – don’t just provide equations

Reference no: EM13977943

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