O'Brien Has a 2-Stock Portfolio with a Total Value of $100,000.$37,500

question 37

Multiple Choice

O'Brien has a 2-stock portfolio with a total value of $100,000.$37,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42.What is his portfolio's beta?

• A)1.17
• B)1.23
• C)1.29
• D)1.35
• E)1.42

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Definitions:

Mental Capacity

The ability of an individual to make decisions or perform tasks that require cognitive functions such as understanding, reasoning, and remembering.

Technical Means

Tools, equipment, and procedures used in the production of goods and services.

Commercial Aircraft

Airplanes specifically designed and utilized for the transportation of passengers and cargo as part of the aviation industry.

Age Cohort

A group of people broadly in the same age range, sharing similar experiences, attitudes, and historical contexts.