QUESTIONS 115 THROUGH 120 RELATE TO PORTFOLIO MANAGEMENT.

118. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING 2013
MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING 2013

118. An asset has an annual return of 19.9%, standard deviation of returns of 18.5%, and

correlation with the market of 0.9.

If the standard deviation of returns on the market is15.9% and the risk-free rate is 1%, the beta of

this asset is closest to:

A. 1.02.

B. 1.05.

C. 1.16