An Investor Divides Her Portfolio into Thirds,with One Part in Treasury

question 32

Multiple Choice

An investor divides her portfolio into thirds,with one part in Treasury bills,one part in a market index,and one part in a diversified portfolio with beta of 1.50.What is the beta of the investor's overall portfolio?

• A) 0.833
• B) 1.000
• C) 1.167
• D) 1.250

---

Definitions:

Assessed Values

Assessed values are the valuation of property, usually by a public tax assessor, for the purpose of determining property taxes.

Mill Rate

The amount of tax payable per dollar of the assessed value of a property.

Current Assessment

An evaluation or estimation of the present status, value, or condition of something.

Percentage

A fraction or ratio expressed as a part of 100, used to denote a proportion of a whole.