Keith Johnson Has $100,000 Invested in a Two-Stock Portfolio

question 140

Multiple Choice

Keith Johnson has $100,000 invested in a two-stock portfolio.Thirty thousand dollars is invested in Potts Manufacturing and the remainder is invested in Stohs Corporation.Potts' beta is 1.60 and Stohs' beta is 0.60.What is the portfolio's beta?

• A)0.66
• B)0.74
• C)0.82
• D)0.90

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity and is often referred to as the "fight or flight" system.

Central

Central refers to something that is of primary importance or located at the middle or core of something.

Somatic

Relating to or affecting the body, especially as distinguished from the mind or consciousness.

Parasympathetic

Pertaining to the part of the autonomic nervous system that conserves physical resources and slows down heart rate.