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Suppose You Have $3,600 to Invest in Securities a and B.Security

Question 93

Multiple Choice

Suppose you have $3,600 to invest in Securities A and B.Security A has an expected return of 6 percent and a beta of 0.5.Stock B has an expected return of 20 percent and a beta of 1.8.What is the expected return on the portfolio if the portfolio beta is 2.0?


A) 24.00%
B) 23.65%
C) 22.15%
D) 22.22%

Correct Answer:

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