Your Portfolio Has a Beta of 1

question 57

Multiple Choice

Your portfolio has a beta of 1.28. The portfolio consists of 35 percent U.S. Treasury bills, 31 percent Stock A, and 34 percent Stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of Stock B?

• A) 1.47
• B) 1.52
• C) 2.04
• D) 1.84
• E) 2.85