Assume that the single factor APT model applies and a portfolio exists such that 2/3 of the funds are invested in Security Q and the rest in the risk-free asset.Security Q has a beta of 1.5.The
Portfolio has a beta of:
A)0.00
B)0.50
C)0.75
D)1.00
E)1.50

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The Answer of Assume that the single factor APT model applies and a portfolio exists such that 2/3 of the funds are invested in Security Q and the rest in the risk-free asset.Security Q has a beta of 1.5.The
Portfolio has a beta of:
A)0.00
B)0.50
C)0.75
D)1.00
E)1.50

Assume That the Single Factor APT Model Applies and a Portfolio