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
D
You might also like to view...
Being socially responsible is the only the right thing to do; it can distinguish a company from its industry peers
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. The cost per equivalent unit for transferred in units is calculated by dividing total transferred in costs by the equivalent units of production for transferred in units. 2. When raw materials are purchased on account, the Accounts Payable account is credited. Process costing is used. 3. The Raw Materials Inventory account is debited when direct materials are issued for production. Process costing is used. 4. When indirect materials are used in production, the Manufacturing Overhead account is credited. Process costing is used. 5. When indirect materials are used in production, the Raw Materials Inventory account is credited. Process costing is used.
The weighted average method separates beginning inventory and current production to compute cost per unit of production
Indicate whether the statement is true or false
ASOBAT emphasized which of the following in its definition of accounting?
a. The creative ability of the accountant b. The work and skill of the accountant c. The needs of the users of accounting information d. Recording transactions