Stock J Has a Beta of 1

question 29

Multiple Choice

Stock J has a beta of 1.17 and an expected return of 14.4 per cent,while Stock K has a beta of 0.68 and an expected return of 7.6 per cent.You want a portfolio with the same risk as the market.What is the expected return of your portfolio?

• A)12.04 per cent
• B)13.13 per cent
• C)10.67 per cent
• D)11.62 per cent
• E)11.18 per cent

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Definitions:

Organizational Patterns

Structured frameworks that dictate the arrangement of ideas and information in writing or speech to effectively communicate the message.

Neutral Reader

Someone who reads or reviews content without any prior biases or expectations, offering impartial feedback.

Spatial Pattern

An arrangement of objects, features, or values within a particular area or space, often analyzed in geography and urban planning.

Physical Arrangement

The way physical objects are organized or positioned in a space.