You Own a Portfolio Equally Invested in a Risk-Free Asset

question 43

Multiple Choice

You own a portfolio equally invested in a risk-free asset and two stocks.If one of the stocks has a beta of 1.86 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

• A)1.07
• B).54
• C)1.14
• D).14
• E).97

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