A Portfolio Has a Beta of 1

question 12

Multiple Choice

A portfolio has a beta of 1.27.The portfolio consists of 25 percent U.S.Treasury bills,38 percent Stock A,and 37 percent Stock B.Stock A has a risk level equivalent to that of the overall market.What is the beta of Stock B?

• A)1.54
• B)1.49
• C)2.02
• D)1.79
• E)2.41

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