You Invest 50% of Your Money in Security a with a Beta

question 40

Multiple Choice

You invest 50% of your money in security A with a beta of 1.6 and the rest of your money in security B with a beta of 0.7.The beta of the resulting portfolio is

• A)1.40.
• B)1.15.
• C)0.36.
• D)1.08.

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Definitions:

Psychotherapy

A treatment method involving talking with a mental health professional to understand and overcome psychological issues or disorders.

Drugs

Substances used for medical treatment or abused to alter one's mental state or physical performance.

Psychodynamic Therapy

A therapy method for resolving mental stress which is rooted in Freudian theories of psychological processes, focusing on unconscious conflicts.

Cognitive Therapy

A form of psychotherapy that emphasizes the importance of thought patterns in influencing behavior and emotions.