A Portfolio Contains Four Assets

question 61

Multiple Choice

A portfolio contains four assets.Asset 1 has a beta of .7 and composes 40% of the portfolio.Asset 2 has a beta of 1.3 and composes 20% of the portfolio.Asset 3 has a beta of 1.1 and composes 20% of the portfolio.Asset 4 has a beta of 2.16 and composes the remaining 20% of the portfolio.If the riskless rate is expected to be 3% and the market risk premium is 7%,what is the beta of the portfolio?

• A)1.19
• B)1.24
• C)1.30
• D)1.48
• E)1.64

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Definitions:

Space

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