What must be the beta for the second equity security

Reference no: EM131949873

Question: You are building a securities portfolio to be equally risky as the market itself. You have decided your portfolio will be equally-weighted among three holdings -- two equity securities and some T-bills. If the beta for the first equity security chosen is (+) 1.2, what must be the beta for the second equity security? (HIint: Don't forget to take into account the beta for your T-bills.)

(-) 0.2

(+) 0.8

(+) 1.2

(+) 1.8

It's impossible to determine from the information provided.

Reference no: EM131949873

Questions Cloud

Give you actual practice in constructing a marketing plan : To teach you the importance of integrating material and achieving internal consistency. Give you actual practice in constructing a Marketing Plan.

Record the sale of the bond : Based on the above information make the following journal entries. You must show supporting computations to receive credit. Record the sale of the bond.

How does the presence of the two screw gun models affect : The lines produces Nail Guns (N), Screw Guns (S), Staplers (P), and Crimpers (C). The weekly demand rates are 1200 N, 1800 S, 2100 P and 300 C.

Prepare a balance sheet and income statement : Prepare a balance sheet and Income statement, in proper form for ABC Corp Corporation receives 1,000,000 from funding investors

What must be the beta for the second equity security : You are building a securities portfolio to be equally risky as the market itself. You have decided your portfolio will be equally-weighted among three holdings.

What are the major factors in selecting a vice presidential : What are the major factors in selecting a Vice Presidential candidate? Why would the selection of a Vice President undermine the primary process?

Essay - elements for children to thrive in their environment : My prompt is the elements necessary for children to thrive in their environment - Restate thesis and key ideas and highlight the significance of the issue

Review similar-risk opportunities : The Buccaneer Corporation has announced a dividend to be paid this year of $2.00 per share (D1 = $2.00) On the basis of review of similar-risk opportunities.

What would be the average inventory level for this gas : A semiconductor manufacturer purchases enormous amounts specialty gases to be used in its manufacturing processes.

User Account

All Pages