You Form a Portfolio by Investing Equally in a (Beta

question 354

Multiple Choice

You form a portfolio by investing equally in A (beta = 0.8) , B (beta = 1.2) , the risk-free asset, and the market portfolio. What is your portfolio beta?

• A) 0.67
• B) 0.75
• C) 0.95
• D) 1.12
• E) 1.15

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Definitions:

Civil Law

A legal system originated in Europe, characterized by its codification of law, where laws are written into a collection, codex, or system, and serve as the primary source of law.

Criminal Law

The body of law that relates to crime, prescribing conduct perceived as threatening, harmful, or otherwise endangering to people’s property, health, safety, and moral welfare.

Sued

The action of bringing a lawsuit against an individual or entity, claiming harm or wrongdoing that demands legal remedy.

Rescission

The rescinding or cancellation of a contract or transaction. In general, its effect is to restore the parties to their original precontractual position.