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

question 42

Multiple Choice

You own a portfolio equally invested in a risk-free asset and two stocks.One of the stocks has a beta of 1.9 and the total portfolio is equally as risky as the market.What is the beta of the second stock?

• A)0.75
• B)0.80
• C)0.94
• D)1.00
• E)1.10

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