You Invest $600 in a Security with a Beta of 1.2

question 37

Multiple Choice

You invest $600 in a security with a beta of 1.2 and $400 in another security with a beta of 0.90.The beta of the resulting portfolio is

• A)1.40.
• B)1.00.
• C)0.36.
• D)1.08.

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Definitions:

Savings

Money that is set aside or deposited, typically in a bank account, for future use or as a precaution against emergencies.

Interest Rate

The percentage of the principal that is paid as a fee over a certain period of time for the use of borrowed money.

Future Amount

The predicted amount of money that an investment will grow to over a period of time, considering factors like interest rates and compounding.

Equivalent Amount

The same value or quantity expressed in a different way or form.