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Your Portfolio Has a Beta of 1

question 41

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Your portfolio has a beta of 1.18.The portfolio consists of 15% Treasury bills, 30% in share A, and 55% in share B.Share A has a risk-level equivalent to that of the overall market.What is the beta of
Share B?


Definitions:

Satisfaction of Debt

The fulfillment or payment of a debt in its entirety, releasing the debtor from further obligations.

Common Law

A legal system based on customs and court rulings rather than written laws, where the principle of precedent guides future judicial decisions.

Quantum Meruit

A legal principle that one who benefits from another's services in absence of a contract must still compensate the service provider.

As Much

A phrase indicating an equal quantity, degree, or condition.

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