What Is the Beta of a Portfolio with an Expected

question 23

Multiple Choice

What is the Beta of a portfolio with an expected return of 12% if Treasury bills yield 6% and the market risk premium is 8%?

• A)0.50
• B)0.75
• C)0.90
• D)1.50

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Definitions:

Transgenic Organism

A plant or animal that has foreign DNA incorporated into its genome.

Recombinant Organism

An organism that has been genetically engineered to contain and express genes from another species.

DNA Ligase

An enzyme that facilitates the joining of DNA strands together by catalyzing the formation of a phosphodiester bond between them.

Plasmid

A plasmid is a small, circular, double-stranded DNA molecule found in bacterial cells and some eukaryotes, often carrying genes that provide antibiotic resistance or other advantages to the cell.