The individual stocks and the allocations that make-up a mutual fund are as follows:

security beta money invested

A 1.5 $ 2,000

B 1.8 $ 3,000

C 0.8 $ 5,000

In addition you know that the risk-free rate is 4% and the market expected rate of return is 14%.

30) What is the expected return on the fund?

A) 16.4% B) 13.5% C) 17.2% D) 15.6%

31) What is the beta of the mutual fund?

A) 1.35 B) 1.24 C) 2.1 D) 1.2

32) The beta of the market portfolio is

A) 1.0 B) 0.0 C) 1.5 D) 0.5

33) The beta of the risk-free asset is

A) 1.0 B) 2.1 C) 0.5 D) 0.0