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Author Question: A friend tips you off on a hot stock: Sure Thing Mines Ltd. You only have $10,000 to invest but you ... (Read 87 times)

plus1

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on: Apr 25, 2021
A friend tips you off on a hot stock: Sure Thing Mines Ltd. You only have $10,000 to invest but you want to invest more. Assume that you can borrow an additional $5,000 by short-selling the risk free asset (issuing T-Bills). You purchase $15,000 worth of shares in Sure Thing Mines Ltd. 
The expected returns and standard deviations of the two assets are outlined in the table below:

AssetExpected ReturnBeta
T-Bills5.5%0
Sure Thing Mines15%1.70
What is the beta of the portfolio?
◦ 1.50
◦ 1.70
◦ 2.50
◦ 2.55
◦ 2.70
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by plus1 on Apr 25, 2021

vkodali

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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plus1

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Reply 2 on: Apr 25, 2021
Excellent

Liamb2179

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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