You Own Two Mutual Funds

question 51

Multiple Choice

You own two mutual funds.Fund A has an expected return of 12% and a beta of 0.8.Fund B has an expected return of 18% and a beta of 1.4.If your portfolio beta is the same as the market portfolio,what proportion of your portfolio is invested in fund A?

• A) 1/4
• B) 1/3
• C) 1/2
• D) 2/3
• E) 3/4

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Definitions:

Demand

The volume of goods or services that consumers are ready and financially able to buy at several prices over a designated period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price, at a specific time.

Complementary Good

A product that is consumed along with another, such that the demand for one increases the demand for the other.

Buyers

Buyers are individuals or entities that purchase goods and services for personal use, resale, or production purposes in the market.