Question
An investment banker has recommended a $100,000 portfolio containing assets B, D, and F. $20,000 will be invested in asset B, with a beta of
An investment banker has recommended a $100,000 portfolio containing assets B, D, and F. $20,000 will be invested in asset B, with a beta of 2; $50,000 will be invested in asset D, with a beta of 3; and $30,000 will be invested in asset F, with a beta of 1. The beta of the portfolio is ______. Select one: a. 3.4 b. 3.1 c. 2.3 d. 2.2
What is beta of Asset X if the expected return on Asset X is 14%, the expected market return is 10%, and the risk free rate is 6%? Select one: a. 0.67 b. 1.00 c. 1.33 d. 2.00
Which of the following is FALSE? Select one: a. Two assets whose returns move in the same direction and have a correlation coefficient of +1 are very risky assets. b. Combining assets that are not perfectly positively correlated with each other can reduce the overall variability of returns. c. The standard deviation of a portfolio is a function of the standard deviations of the individual securities in the portfolio, the proportion of the portfolio invested in those securities, and the correlation between the returns of those securities. d. Even if assets are not negatively correlated, the lower the correlation between them, the lower the resulting risk of the portfolio.
Please Solve As soon as Thank's Abdul-Rahim Taysir
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