What Is the Beta for a Portfolio Equally Weighted in Four

question 21

Multiple Choice

What is the beta for a portfolio equally weighted in four assets: A, the market portfolio; B, which has half the risk of A; C, which has twice the risk of A; and D, which is risk-free?

• A) 0.500
• B) 0.750
• C) 0.875
• D) 1.250
• E) 1.375

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