Sherrie Hymes Holds a $200,000 Portfolio Consisting of the Following

question 33

Multiple Choice

Sherrie Hymes holds a $200,000 portfolio consisting of the following stocks.The portfolio's beta is 0.875. $\begin{array}{crr}\text { Stock }&\text { Investment }&\text { Beta }\\\text { A } & \$ 50,000 & 0.50 \\\text { B } & 50,000 & 0.80 \\\text { C } & 50,000 & 1.00 \\\text { D } & 50,000 & 1.20 \\\text { Total } & \$ 200,000 &\end{array}$ If Sherrie replaces Stock A with another stock, E, which has a beta of 1.50, what will the portfolio's new beta be?

• A) 1.07
• B) 1.13
• C) 1.18
• D) 1.24
• E) 1.30

---

Definitions:

Sexual Dysfunction

A problem that prevents an individual or couple from experiencing satisfaction from sexual activity.

Pedophilia

A condition in psychiatry where adults are sexually attracted to children before their puberty.

Refractory Period

A period immediately following the stimulation during which a nerve or muscle is unresponsive to further stimulation.

Refractory Period

The period immediately following a nerve impulse or muscular contraction in which a nerve or muscle is unresponsive to further stimulation.