A Portfolio Consists of One Risky Asset and One Risk-Free

question 51

Multiple Choice

A portfolio consists of one risky asset and one risk-free asset. The risky asset has an expected return of 13.2 percent and a beta of 1.43. The risk-free asset has an expected return of 3.8 percent. How much of the portfolio is invested in the risk-free asset if the portfolio beta is 1.06?

• A) 26 percent
• B) 34 percent
• C) 42 percent
• D) 65 percent
• E) 74 percent

---

Definitions:

HR Triad

A conceptual framework in human resources management that includes three key actors: line managers, HR professionals, and employees.

Human Resources

The department within an organization responsible for managing all matters related to the employment lifecycle, including hiring, training, compensation, and employee relations.

Contributing

The act of giving or adding to something, especially in the context of a group effort or project.

HR Department

The division within a company responsible for managing all aspects of employee relations, including recruitment, training, payroll, and benefits administration.