You own two mutual funds. Fund A has an expected return of 12 and ...

[Medesa]

You own two mutual funds. Fund A has an expected return of 12 and a beta of 0.8. Fund B has an expected return of 18 and a beta of 1.4.
 
  If your portfolio beta is the same as the market portfolio, what proportion of your portfolio is invested in fund A?
  A) 1/4
  B) 1/3
  C) 1/2
  D) 2/3
  E) 3/4

Question 2

Which of the following would NOT be found in a cash budget?
 
  A) depreciation B) cash sales
  C) taxes D) interest expense

[pami445]

Answer to Question 1

D

Answer to Question 2

A