Multiple Choice
A stock has a beta of 1.30 and an expected return of 16 percent. The risk-free rate is 5 percent. If a portfolio of the two assets has an expected return of 13 percent, what is the beta of the portfolio?
A) 1.06
B) 0.87
C) 1.02
D) 0.95
E) 0.91
Correct Answer:
Verified
Correct Answer:
Verified
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