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Author Question: John has a portfolio consisting of equal proportions of 5 securities. Susan also has a portfolio of ... (Read 172 times)

809779

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John has a portfolio consisting of equal proportions of 5 securities. Susan also has a portfolio of the same five securities but the weights of each security are not equal. Which of the statements below MUST be true?
 
  A) Because Susan has an unequal distribution of securities, her portfolio beta must be less than John's.
  B) Without additional information, we cannot be certain whose portfolio beta is greater.
  C) Because Susan has an unequal distribution of securities, her portfolio beta must be greater than John's.
  D) Because the portfolios contain the same securities, the beta of each portfolio must be the same.

Question 2

Asset p has a beta of 1.1. The risk-free rate of return is 4 percent, while the return on the market portfolio of assets is 12 percent. The asset's required rate of return is:
 
  A) 6
  B) 12.8
  C) 5.4
  D) 10
  E) 9.5


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shaikhs

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809779

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review


triiciiaa

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Reply 3 on: Yesterday
Wow, this really help

 

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