Assume you want to construct a portfolio with a 14% return from the following two securities: $$\begin{array} { l l l }
\text { Security } & \text { Expected Return } & \text { Beta } \
1 & 16 \% & 1.12 \
2 & 12.5 \% & 0.94
\end{array}$$ What percentage of your portfolio should be invested in Security 1?
A) 57%
B) 47%
C) 43%
D) 53%

Question

Assume you want to construct a portfolio with a 14% return from the following two securities: $$\begin{array} { l l l } 
\text { Security } & \text { Expected Return } & \text { Beta } \
1 & 16 \% & 1.12 \
2 & 12.5 \% & 0.94
\end{array}$$ What percentage of your portfolio should be invested in Security 1?
A) 57%
B) 47%
C) 43%
D) 53%

Quizplus · Accepted Answer

The Answer of Assume you want to construct a portfolio with a 14% return from the following two securities: $$\begin{array} { l l l } 
\text { Security } & \text { Expected Return } & \text { Beta } \
1 & 16 \% & 1.12 \
2 & 12.5 \% & 0.94
\end{array}$$ What percentage of your portfolio should be invested in Security 1?
A) 57%
B) 47%
C) 43%
D) 53%

Assume You Want to Construct a Portfolio with a 14 Security Expected Return Beta 116%1.12212.5%0.94\begin{array} { l l l } \text { Security } & \text { Expected Return } & \text { Beta } \\1 & 16 \% & 1.12 \\2 & 12.5 \% & 0.94\end{array} Security 12​ Expected Return 16%12.5%​ Beta 1.120.94​

Assume You Want to Construct a Portfolio with a 14 $\begin{array} { l l l } \text { Security } & \text { Expected Return } & \text { Beta } \\1 & 16 \% & 1.12 \\2 & 12.5 \% & 0.94\end{array}$