Which of the following portfolios will have the highest beta?
A)Portfolio of U.S. Treasury bills
B)Portfolio of U.S. government bonds
C)Portfolio containing 50 percent U.S. Treasury bills and 50 percent U.S. government bonds
D)Portfolio of U.S. common stocks

Question

Quizplus · Accepted Answer

Stocks, specifically common stocks, typically have a higher beta than bonds or Treasury bills. Therefore, a portfolio of U.S. common stocks will have the highest beta among the given options.

Which of the Following Portfolios Will Have the Highest Beta