What Is the Beta of a Portfolio If 30% of the Funds

question 55

Multiple Choice

What is the beta of a portfolio if 30% of the funds are invested in a risk-free asset, 40% in the market portfolio, and the balance in a portfolio that has three times the risk of the market portfolio?

• A)0.4
• B)0.7
• C)1.3
• D)1.8

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Definitions:

Tablet

is a solid dosage form of medication, typically ingested orally, designed to deliver a specific dose of medication.

Aspiration

The inhalation of foreign materials into the lungs, or a strong desire for achievement.

Blood Return

The visible flow of blood back into a device, such as a syringe, indicating successful entry into a vein during intravenous procedures.

Aspirin

A medication used to reduce pain, fever, inflammation, and in low doses, to prevent blood clots.