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    Corporate Finance The Core
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    Exam 11: Optimal Portfolio Choice and the Capital Asset Pricing Model
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    Suppose That Google Stock Has a Beta of 1
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Suppose That Google Stock Has a Beta of 1

Question 108

Question 108

Multiple Choice

Suppose that Google Stock has a beta of 1.06 and Boeing stock has a beta of 1.31.The beta on a portfolio that consists of 30% Google stock and 70% Boeing stock is closest to:


A) 1.06
B) 1.14
C) 1.19
D) 1.24

Correct Answer:

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