Assuming Positive Returns on Treasury Bills, What Can You Assume

question 53

Multiple Choice

Assuming positive returns on Treasury bills, what can you assume about an investor whose diversified portfolio of stocks yielded 25% when the market portfolio yielded 15%?

• A) Treasury bills are offering a 10% yield.
• B) The portfolio beta is greater than 1.0.
• C) The portfolio beta equals 1.67.
• D)The investor's portfolio contains many defensive stocks.

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