You have a portfolio that is 25% invested in the risk-free asset, 30% invested in Stock A with a beta of 1.35, and the remainder in Stock B. If the beta of your portfolio is the same as the market, what is the beta of Stock B?
A) 1.39
B) 1.25
C) 1.32
D) 1.46
E. 1.28

Question

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The Answer of You have a portfolio that is 25% invested in the risk-free asset, 30% invested in Stock A with a beta of 1.35, and the remainder in Stock B. If the beta of your portfolio is the same as the market, what is the beta of Stock B?
A) 1.39
B) 1.25
C) 1.32
D) 1.46
E. 1.28

You Have a Portfolio That Is 25% Invested in the Risk-Free