Stock XYZ Has a Beta of 1

question 58

Multiple Choice

Stock XYZ has a beta of 1.2 and an expected return of 14%; the risk-free asset (T-bills) currently earns 4%. If the portfolio of the two assets has a beta of 1.6, what are the portfolio weights?

• A) risk-free asset = 33%, stock XYZ = 67%
• B) risk-free asset = 0%, stock XYZ = 100%
• C) risk-free asset = 133%, stock XYZ = -33%
• D) risk-free asset = -33%, stock XYZ = 133%

Differentiate between innovation and invention in the context of commercialization and scientific research.

Discuss the economic viewpoint on technological advances as a response to market mechanisms.

Evaluate the decision-making process involved in R&D spending by firms.

Understand the concept of marginal utility (MU) in the adoption of new products by consumers.

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Definitions:

Genital Herpes

A sexually transmitted infection caused by the herpes simplex virus, characterized by painful blisters in the genital area.

Trichomoniasis

A sexually transmitted infection caused by the parasite Trichomonas vaginalis, resulting in symptoms like itching, burning, and discharge in affected individuals.

Cervical Cancer

A type of cancer arising from the cervix, often associated with human papillomavirus (HPV) infection, and detectable through screening tests like Pap smears.

Abnormal Pap

A Pap test result indicating that there are changes in the cells of the cervix which could be precancerous or cancerous.