Consider an Investor Who Owns Three Assets: Asset 1, Asset

question 32

Multiple Choice

Consider an investor who owns three assets: asset 1, asset 2, and asset 3 and invests equally in each of the three assets. If the beta of asset 1 is 1.2, the beta of asset 2 is 1.5 and the Beta of asset 3 is zero, then what is the beta of the investor's portfolio.

• A) 0.75
• B) 0.90
• C) 1.10
• D) 1.25

---

Definitions:

Accessibility

The ease with which people can reach or use a place, service, or information, often focused on removing barriers for all individuals, including those with disabilities.

Handguns

Firearms designed to be held and operated with one hand.

Poverty

The condition of lacking sufficient financial resources or income to meet basic needs such as food, housing, and healthcare.

Race

A social construct that categorizes people based on physical characteristics, such as skin color, perceived to signify distinct populations.