What Is the Value of Systematic Risk for a Portfolio

question 104

Multiple Choice

What is the value of systematic risk for a portfolio with 75% of the funds invested in A and 25% of the funds invested in B?

• A) 0.98
• B) 1.13
• C) 1.28
• D) 1.40
• E) 1.60

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Definitions:

Wage Base

The maximum amount of earnings that is subjected to certain taxes, such as Social Security taxes, within a given time period.

Excise Tax

A tax charged on specific goods and services, such as alcohol and tobacco, usually to discourage their use or generate revenue.

Direct Tax

A tax levied directly on an individual or an organization's income or wealth, such as income tax or property tax.

Local Property Taxes

Taxes imposed by local governments based on the assessed value of property, primarily real estate, used to fund local services such as schools, roads, and police.