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:

Profit

Profit represents the financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in operating the business.

Industry Supply

The total output of a specific good or service that all producers in an industry are willing to sell at different price levels.

Industry Demand

The total demand for the products or services produced by a specific industry, reflecting the collective demand of all consumers in the market.

Losses

Financial deficits that occur when the costs of operating a business exceed the revenue generated from selling goods or services.