You Own Two Risky Assets, Both of Which Plot on the Security

question 402

Multiple Choice

You own two risky assets, both of which plot on the security market line. Asset A has an expected return of 12% and a beta of 0.8. Asset B has an expected return of 18% and a beta of 1.4. If your portfolio beta is the same as the market portfolio, what proportion of your funds are invested in asset A?

• A) 0.33
• B) 0.50
• C) 0.67
• D) 1.33
• E) 1.67

Be aware of the various legislation related to equal employment opportunity and their implications for workplace diversity.

Understand the negative impacts of discrimination and the necessity of preventing it in the workplace.

Understand the origins and purposes of the Equal Employment Opportunity Commission (EEOC).

Recognize the importance and challenges of diversity training in the workplace.

---

Definitions:

Perceptual Constancy

The tendency to perceive objects as the same even though the sensations produced by them may differ when, for example, they differ in position or distance.

Rectangle

A four-sided polygon with opposite sides being equal and parallel, and all interior angles being right angles.

Fear of Heights

A phobia characterized by an excessive and irrational fear of high places.

Visual Cliff

An experiment designed to assess perception of depth and fear of falling in infants.