Use the Following Information to Answer the Question(s)below

question 49

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-Suppose that Google stock has a beta of 1.06 and Boeing stock has a beta of 1.31.The beta on a portfolio that consists of 30% Google stock and 70% Boeing stock is closest to:

• A)1.06.
• B)1.14.
• C)1.19.
• D)1.24.

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Definitions:

Gross Sales

Gross sales represent the total sales revenue of a company without any deductions for returns, allowances, or discounts.

Periodic Inventory System

A method of inventory accounting where updates to inventory levels are made periodically at the end of an accounting period, rather than continuously.

Purchases Account

An account used in accounting to record goods acquired for resale during a particular period.

Inventory Account

An account on the balance sheet that reports the value of a company's products that are ready for sale but have not yet been sold.