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Author Question: You want to buy $20,000 worth of shares in Tootsie Roll Industries Inc. on margin, but you only have ... (Read 30 times)

faduma

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You want to buy $20,000 worth of shares in Tootsie Roll Industries Inc. on margin, but you only have $10,000 of your own money to invest. The remaining $10,000 is borrowed by issuing T-Bills; assume the cost of borrowing is the risk-free rate. The weight of Tootsie Roll Industries in your portfolio is 2.0. The weight of T-Bills in your portfolio is -1.0. Assume that Tootsie Roll has a beta of 0.75. What is the beta of the portfolio?
◦ 0.75
◦ 1.25
◦ 1.50
◦ 1.75
◦ 2.00


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Marked as best answer by faduma on Apr 25, 2021

bob

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faduma

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Reply 2 on: Apr 25, 2021
Excellent


bigcheese9

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Reply 3 on: Yesterday
Gracias!

 

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