You Own $2,000 of City Steel Stock That Has a Beta

question 63

Multiple Choice

You own $2,000 of City Steel stock that has a beta of 2.5. You also own $8,000 of Rent-N-Co (beta = 1.9) and $4,000 of Lincoln Corporation (beta = 0.25) . What is the beta of your portfolio?

• A) 1.51
• B) 1.55
• C) 4.65
• D) 14.00

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Definitions:

Consumer Surplus

The difference in total payment consumers are able and willing to offer for a good or service, compared to the payment they actually provide.

Government Spending

Expenditures made by the government for its operations, investments, and social programs.

Subsidy

Financial support provided by the government to individuals, businesses, or industries, usually to encourage the production of certain goods or services.

Cotton Farmers

Agricultural producers who specialize in the cultivation of cotton plants for the fiber and seeds they produce.