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:

Public-Works Projects

Infrastructure projects funded and implemented by the government for public use and benefit, such as roads, bridges, and water treatment facilities.

Categorical Grant

Financial grants given by the federal government to state and local governments for specific purposes, often with strict conditions attached.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s, in response to the Great Depression.

Marble Cake Federalism

A model of federalism where government functions and responsibilities are intermixed among the national, state, and local governments, in contrast to clearly divided layers or levels.