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

question 94

Multiple Choice

You own a portfolio equally invested in the risk-free asset and two stocks. One of the stocks has a beta of 1.30 and the beta of your portfolio is 0.90. What is the beta of the other stock?

• A) 1.52
• B) 1.63
• C) 1.57
• D) 1.40
• E) 1.46