You Own a Portfolio Equally Invested in a Risk-Free Asset

question 35

Multiple Choice

You own a portfolio equally invested in a risk-free asset and two stocks.If one of the stocks has a beta of 1.12 and the total portfolio is equally as risky as the market,what must the beta be for the other stock in your portfolio?

• A)1.37
• B)1.54
• C)1.88
• D)1.98
• E)2.97

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Definitions:

Silence

The absence of expressed opinions, responses, or noises, which can be a powerful communication tool or a form of non-participation.

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