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

question 61

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 1.04 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) 1.96
• D) 2.30
• E) 2.97

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