Author Question: John has a portfolio consisting of equal proportions of 5 securities. Susan also has a portfolio of ... (Read 282 times)

809779 · **on:** Jul 10, 2018

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

shaikhs · **Reply #1 on:** Jul 10, 2018

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 30% of students answer this correctly