Multiple Choice
Assume that the single factor APT model applies and a portfolio exists such that 1/2 of the funds are invested in Security Q and the rest in the risk-free asset. Security Q has a beta of 1.8. The portfolio has a beta of:
A) 0.0.
B) 0.8.
C) 0.9.
D) 1.0.
E) 1.8.
Correct Answer:
Verified
Correct Answer:
Verified
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