You Own a Portfolio Equally Invested in a Risk-Free Asset

question 28

Multiple Choice

You own a portfolio equally invested in a risk-free asset and two stocks.If one of the stocks has a beta of 1.04 and the total portfolio is equally as risky as the market,what must the beta be for the other stock in your portfolio?

• A)1.37
• B)1.54
• C)2.97
• D)1.96
• E)2.30

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Definitions:

Gender

A social construct that involves the roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Biological Condition

Inherent physical and genetic characteristics determining an organism's life processes.

Deconstructive

An approach in critical analysis that seeks to dismantle structures and reveal their underlying assumptions and contradictions.

Masculinist Bias

Describes the tendency in certain discussions or analyses to favor male perspectives or interpret phenomena in ways that uphold male interests.