Assume You Want to Construct a Portfolio with a 14 $$\begin{array} { l l l } \text { Security } & \text { Expected Return } & \text { Beta } \\1 & 16 \% & 1.12 \\2 & 12.5 \% & 0.94\end{array}$$

question 49

Multiple Choice

Assume you want to construct a portfolio with a 14% return from the following two securities: $$\begin{array} { l l l } \text { Security } & \text { Expected Return } & \text { Beta } \\1 & 16 \% & 1.12 \\2 & 12.5 \% & 0.94\end{array}$$ What percentage of your portfolio should be invested in Security 1?

• A) 57%
• B) 47%
• C) 43%
• D) 53%

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