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:

Witchcraft

A practice involving magic or sorcery, historically subject to persecution and accusations, especially in Europe and North America.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and how it's growing over time.

Nominal GDP

The gross domestic product measured at current market prices, without adjusting for inflation, reflecting the value of all goods and services produced by a country.

Environmental Quality

The condition of the natural environment and its ability to sustain life, characterized by factors such as air and water purity and biodiversity.