Explore BrainMass

Explore BrainMass


    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    You are going to invest $20,000 in a portfolio consisting of assets X, Y, Z as follows:

    Asset Annual Return probability beta proportion

    X 10% 0.50 1.2 0.333

    Y 8% 0.25 1.6 0.333

    Z 16% 0.25 2.0 0.333

    The beta of the portfolio containing X Y Z is

    A. 2.0

    B. 2.4

    C. 1.6

    D. 1.5

    The beta of this portfolio indicates:

    A. has more risk then market

    B. has same risk as market

    C. has an undetermined amount of risk compared to market

    D. has less risk than the market

    © BrainMass Inc. brainmass.com October 10, 2019, 1:18 am ad1c9bdddf

    Solution Preview

    Beta of portfolio is the weighted average of each of the ...

    Solution Summary