What Is Nico's Portfolio Beta If He Invests an Equal

question 149

Multiple Choice

What is Nico's portfolio beta if he invests an equal amount in Asset X with a beta of 0.60, Asset Y with a beta of 1.60, and the risk-free asset?

• A) 1.24
• B) 1.00
• C) 0.73
• D) 0.66

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Definitions:

Duodenum

The first section of the small intestine immediately following the stomach, playing a crucial role in digestion.

Villi

Finger-like projections on the wall of the small intestine that increase surface area for absorption of nutrients.

Mucosa

The moist tissue layer lining some organs and body cavities, including the nose, mouth, lungs, and digestive tract.

Small Intestine

A part of the gastrointestinal tract between the stomach and large intestine that digests and absorbs nutrients from food.