You invest 25% of your money in the risk-free asset, 25% in the market portfolio and 50% in a stock with a beta of 2. Given the risk-free rate is 5% and the market return is 15%, what is your portfolio's beta?

You invest 25% of your money in the risk-free asset, 25% in the market portfolio and 50% in a stock with a beta of 2. Given the risk-free rate is 5% and the market return is 15%, what is your portfolio's expected return is closest to?

Answer rating: 100% (QA)

To calculate the portfolios beta we need to calculate the weighted average beta of the individual as... View the full answer