Question: What is the correct answer ? An equity has a beta of 0.9 and an expected return of 9 per cent. A risk-free asset currently

What is the correct answer ?

What is the correct answer ? An equity has a beta of

An equity has a beta of 0.9 and an expected return of 9 per cent. A risk-free asset currently earns 2 per cent. If a portfolio of the two assets has an expected return of 7 per cent, what is its beta? ( 2 decimal places) Select one: a. 0.51 b. 0.64 c. None of the answers are correct. d. 0.58 e. 0.71

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