QUESTION 15If you invest $45,000 in the market index and $30,000 in a risk free investment what is the beta riskof your investment?O 0.30O 0.40O 0.450.60

Market index funds always has a beta of 1. Risk free investment always has a beta of 0.

Answered: If you invest $45,000 in the market…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If you invest $45,000 in the market index and $30,000 in a risk free investment what is the beta risk of your investment? 0.30 O 0.40 O 0.45 0.60