What is the Beta of a portfolio with an expected return of 12% if Treasury bills yield 6% and the market risk premium is 8%?
A)0.50
B)0.75
C)0.90
D)1.50

Name: What is the Beta of a portfolio with an expected return of 12% if Treasury bills yield 6% and the market risk premium is 8%? A)0.50 B)0.75 C)0.90 D)1.50
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Question

Quizplus · Accepted Answer

rS1U1B1pS1U1B0 = 6% + BS1U1B1pS1U1B0(8%)
12% = 6% + BS1U1B1pS1U1B0(8%)
6% = 8%BS1U1B1pS1U1B0S1U1B1

What Is the Beta of a Portfolio with an Expected