You Own a Portfolio Equally Invested in a Risk-Free Asset

question 52

Multiple Choice

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.46 and the total portfolio is equally as risky as the market. What is the beta of the second stock?

• A) 1.38
• B) .87
• C) 1.94
• D) 1.72
• E) 1.54

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