You Would Like to Create a Portfolio That Is Equally

question 76

Multiple Choice

You would like to create a portfolio that is equally invested in a risk-free asset and two stocks.One stock has a beta of 1.39.What does the beta of the second stock have to be if you want the portfolio to be equally as risky as the overall market?

• A).72
• B).97
• C)1.23
• D)1.55
• E)1.61

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Definitions:

Cell Cycle

Collective series of intervals and events of a cell’s life, from the time it forms until its cytoplasm divides.

Fungal Cell Walls

The rigid structure surrounding the cell membrane of fungi, composed primarily of chitin and glucans.

Chitin

A long-chain polymer of N-acetylglucosamine, a derivative of glucose, and is a primary component of cell walls in fungi and exoskeletons of arthropods.

Cellulose

A complex carbohydrate that is composed of glucose units, forming the primary structural component of plant cell walls.