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:

Milk Runs

A delivery method where a single vehicle collects and delivers goods in a route that minimizes transportation time and cost, often used for JIT inventories.

LTL Carrier

An LTL (Less Than Truckload) Carrier is a transportation service that combines shipments from multiple customers into one truckload, optimizing efficiency for smaller loads.

Package Carrier

A company or service that specializes in the transportation and delivery of parcels and packages, operating within postal, commercial, or freight contexts.

Private Fleet

A company-owned or leased set of transport vehicles dedicated to moving the company’s goods, providing control over logistics operations.