Question
What is the beta of a portfolio consisting of $2,000 cash, $5,000 invested in a stock with a beta of 1.6, and $3,000 invested in
What is the beta of a portfolio consisting of $2,000 cash, $5,000 invested in a stock with a beta of 1.6, and $3,000 invested in a well-diversified portfolio?
A)0.767
B)0.867
C)1.100
D)1.375
E)1.600
(CAPITAL ASSET PRICING MODEL) CAPM
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Analysis for Financial Management
Authors: Robert C. Higgins
10th edition
007803468X, 978-0078034688
