What grandpa and grandma betas are

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Problem 1: Grandpa's portfolio consists of $300,000 of T-bills and $200,000 of the market portfolio. Grandma borrowed $400,000 and combined it with her $1,000,000 net worth to invest $1.4 million in the market portfolio. Grandpa's and Grandma's betas are:

a. .2 and 1.4

b. .4 and -.4

c. .4 and 1.4

d. .6 and 1

e. .6 and 1.4

f. .66 and 1

g. none of the above, they must add to 1.0

Reference no: EM132792739

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