Question
What is the beta of a portfolio if 30 percent of the funds are invested in a risk-free asset, 40 percent in the market portfolio,
What is the beta of a portfolio if 30 percent of the funds are invested in a risk-free asset, 40 percent in the market portfolio, and the balance in a portfolio that has three times the risk of the market portfolio?
A0.4
B0.7
C)1.3
D)1.8
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
