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:

Insubordination

Refusal to obey orders or follow directions from superiors, often challenging authority.

Interpersonal Relations

Relationships or interactions between individuals or groups.

Work-Related Stressors

Factors or situations in the workplace that can cause stress, affecting an employee's health and performance.

Social Support

The provision of emotional, informational, or practical assistance from individuals or groups to someone who needs it.