You Own a Portfolio Equally Invested in a Risk-Free Asset

question 43

Multiple Choice

You own a portfolio equally invested in a risk-free asset and two stocks.If one of the stocks has a beta of 1.86 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

• A)1.07
• B).54
• C)1.14
• D).14
• E).97

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Definitions:

Consultative Selling

A sales approach focusing on building a relationship with the customer and providing solutions to their problems by understanding their needs.

Comparative Price List

A comparative price list is a document or tool that lists the prices of similar products or services from different suppliers, allowing consumers or purchasers to compare costs easily.

Transportation System

Refers to the infrastructure, modes, and operations involved in the movement of goods and people from one location to another.

Adaptive Selling

A sales approach that involves customizing the sales method based on the nature of the customer or sales situation.