You Have a Portfolio with a Beta of 3

question 19

Multiple Choice

You have a portfolio with a beta of 3.1. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 4.5?

• A) 3.31
• B) 3.51
• C) 3.61
• D) 3.71

Recognize the reasons behind stock repurchases and their financial statement implications.

Understand the allocation of share-based compensation costs and its reporting requirements.

Understand the distinction between complex and simple capital structures.

Recognize reporting requirements for diluted and basic earnings per share (EPS).

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Definitions:

Pharynx

A muscular tube that connects the mouth and nasal passages with the esophagus and larynx, serving both respiratory and digestive systems.

Digestive System

A complex series of organs and glands responsible for the digestion, absorption of nutrients, and expulsion of waste.

Nasal Cavity

The large air filled space behind the nose, involved in respiration and sense of smell.