What Is the Beta of a Portfolio If 40% of the Funds

question 101

Multiple Choice

What is the beta of a portfolio if 40% of the funds are invested in a risk-free asset and the balance of the funds is invested in the market portfolio?

• A)0.4
• B)0.6
• C)0.8
• D)1.0

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Definitions:

Rewards

Benefits, both tangible and intangible, given to employees as recognition for their work and to motivate continued performance.

Motivate

To provide someone with a reason or incentive to do something.

Coercion

The act of compelling or forcing someone to act in a certain way by use of threats or pressure.

Commitment

The state or quality of being dedicated to a cause, activity, or job; wholeheartedly dedicated.