What Is the Portfolio Beta If 25% of Your Funds

question 57

Multiple Choice

What is the portfolio beta if 25% of your funds are invested in the market portfolio, 25% in an asset with twice as much risk as the market portfolio, and the remainder in a risk-free asset?

• A) 0.25
• B) 0.50
• C) 0.75
• D) 1.00
• E) 1.25

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Definitions:

Search Without A Warrant

A law enforcement action to search a person or property without possessing a court-issued warrant, permissible only under certain conditions.

Law Enforcement

Governmental agencies and officers responsible for the prevention, detection, and investigation of crimes, and the apprehension of criminals.

Warrant

A legal document issued by a judicial officer that allows for certain actions, such as the search of a premises or the arrest of an individual.

Fifth Amendment

An amendment to the U.S. Constitution that guarantees several protections for individuals, including the right against self-incrimination and the right to due process.