What Is the Beta of the Following Portfolio

question 35

Multiple Choice

What is the beta of the following portfolio?

• A) .98
• B) 1.15
• C) 1.19
• D) 1.21
• E) 1.23

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by Treasury bills, serving as a benchmark for assessing the risk and return of other investments.

Good Economy

An economic state characterized by strong growth, low unemployment, and stable prices, reflecting overall health and prosperity.

Poor Economy

A situation characterized by low economic activity, high unemployment, and declining market conditions.

Expected Return

The anticipated amount of profit or loss an investment generates, based on projections or historical data.