An Investor Has a Portfolio with an Expected Return of 11.19

question 22

Multiple Choice

An investor has a portfolio with an expected return of 11.19%. The portfolio is evenly invested in a stock and a risk-free asset. The market has an expected return of 17% and the risk-free asset has an expected return of 3%. What is the beta of the stock?

• A) .98
• B) 1.17
• C) 1.43
• D) 1.62
• E) 1.94

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