Consider a Portfolio Made Up of Two Risky Assets and a Risk-Free

question 111

Multiple Choice

Consider a portfolio made up of two risky assets and a risk-free asset. You invest 40% in asset A with a beta of 1.25 and 40% in asset B with a beta of 1.15. What is the beta of the portfolio?

• A) 0.84
• B) 0.96
• C) 1.03
• D) 1.12
• E) 1.20

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Definitions:

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences.

Gene

DNA segment that encodes the synthesis of a particular protein.

Gene Expression

The process by which information from a gene is used in the synthesis of a functional gene product, often proteins.

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