Valid CFA-Level-I Dumps shared by ExamDiscuss.com for Helping Passing CFA-Level-I Exam! ExamDiscuss.com now offer the newest CFA-Level-I exam dumps, the ExamDiscuss.com CFA-Level-I exam questions have been updated and answers have been corrected get the newest ExamDiscuss.com CFA-Level-I dumps with Test Engine here:
A portfolio consists of 45% of wealth invested in the market portfolio and the remaining in risk-free T-bills yielding 6.3%. The market portfolio has an expected return of 17% and a standard deviation of 19%. The beta of the portfolio is ______.
Correct Answer: B
If your wealth is divided between the market portfolio and the risk-free asset, the portfolio beta equals the fraction invested in the market portfolio. It is instructive to prove this either by using the CAPM equation directly or by calculating the covariance between the portfolio and the market.