Table 8.2
You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows:
-The beta of the portfolio in Table 8.2 indicates this portfolio ________.
A) has more risk than the market
B) has less risk than the market
C) has an unrelated amount of risk compared to the market
D) has the same risk as the market

Question

Table 8.2
You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows: 
-The beta of the portfolio in Table 8.2 indicates this portfolio ________.
A) has more risk than the market 
B) has less risk than the market 
C) has an unrelated amount of risk compared to the market 
D) has the same risk as the market

Quizplus · Accepted Answer

The beta of the portfolio is 1.2, which is greater than 1, indicating that the portfolio has more risk than the market.

Table 8.2 You Are Going to Invest $20,000 in a Portfolio Consisting