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

question 32

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.
• E) 0.80.

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Definitions:

Manipulating Sympathies

The practice of influencing others' feelings or attitudes towards a particular perspective or situation, often seen in storytelling and political rhetoric.

Melodrama

A dramatic work that emphasizes plot at the expense of character development and typically uses exaggerated situations to appeal to emotions.

Warner Bros.

An American entertainment company and one of the major film studios, known for producing films, television shows, and music, as well as distributing media and entertainment.

Unique Style

A distinctive approach or method in various forms of art that sets an individual or work apart from others, often characterized by originality and consistency.