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Homework answers / question archive / You own a portfolio which is 30 percent invested in U
You own a portfolio which is 30 percent invested in U.S. Treasury bills, 20 percent invested in Stock A with a beta of 1.20. 10 percent invested in stock B with a beta of.90, and the remainder is invested in stock C. Stock C is as equally risky as the market. The risk-free rate of return is 4 percent and the expected return on the market is 10 percent. What is the portfolio beta? 0.60 0.80 0.73 1.10 2.20
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