Question $15$

Question $15$

$0\mathrm{.}625$ Points

"What is the Portfolio Beta if you hold positions in the following stocks displayed in this format $($Current price per share, # of shares in our portfolio, Beta for each stock$)($FIN$340$ Company $$9\mathrm{.}25,900$ shares, $0\mathrm{.}45$ Beta$)$; $($ABC Company $$56\mathrm{.}25,125$ shares, $1\mathrm{.}67$ Beta$)$; $($DEF Company $$84\mathrm{.}21,80$ shares, $2\mathrm{.}41$ Beta$)$; and $($XYZ Company $$139\mathrm{.}25,35$ shares, $1\mathrm{.}85$ Beta$)$;$"$

$1\mathrm{.}93$

$1\mathrm{.}51$

$0\mathrm{.}76$

$1\mathrm{.}60$

What is a market risk premium?

The market$$s expected rate of return above the rate of inflation

The expected rate of return on a risk$-$free asset

The reduction in the market$$s expected rate of return due to it being riskier than a risk$-$free asset

The market$$s rate of return above that of the risk$-$free rate