An Investor Has a Portfolio with an Expected Return of 11.19

question 168

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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Definitions:

Dreaming

A series of thoughts, images, or emotions occurring during sleep.

Pons

A part of the brain located above the medulla and beneath the midbrain, involved in regulating breathing, communication between different parts of the brain, and sensations such as hearing, taste, and balance.

Head Injury

Physical trauma to the head, which can affect the brain and lead to temporary or permanent damage.

Cerebral Cortex

The outer layer of the brain that is involved in high-level functions such as sensation, voluntary muscle movement, thought, reasoning, and memory.