Question
Your portfolio has a beta of 1.24. The portfolio consists of 10% U.S. Treasury bills, 55% in stock A, and 35% in stock B. Stock
Your portfolio has a beta of 1.24. The portfolio consists of 10% U.S. Treasury bills, 55% in stock A, and 35% in stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?
A. 0
B. .69
C. 1.00
D. 1.24
E. 1.97
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
