Multiple Choice
A portfolio contains four assets. Asset 1 has a beta of .8 and comprises 30% of the portfolio. Asset 2 has a beta of 1.1 and comprises 30% of the portfolio. Asset 3 has a beta of 1.5 and comprises 20% of the portfolio. Asset 4 has a beta of 1.6 and comprises the remaining 20% of the portfolio. If the riskless rate is expected to be 3% and the market risk premium is 6%,what is the beta of the portfolio?
A) 0.80
B) 1.10
C) 1.19
D) 1.25
E) 1.40
Correct Answer:
Verified
Correct Answer:
Verified
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