What must the beta be for other stock in your portfolio

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1. You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.21 and the total portfolio is exactly as risky as the market, what must the beta be for the other stock in your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. A 6% Treasury bond is trading at $1,044 (including accrued interest) per $1,000 of face value. It will make a coupon payment 98 days from now. The yield curve is flat at 5% over the next 150 days. The forward price per $1,000 of face value for a 120-day forward contract, is?

Reference no: EM132044356

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