Mike Flannery Holds the Following Portfolio What Is the Portfolio's Beta? Do Not Round Your Intermediate

question 88

Multiple Choice

Mike Flannery holds the following portfolio: $\begin{array}{lrr}\text { Stock }&\text { Investment }&\text { Beta }\\A & \$ 150,000 & 1.40 \\\mathrm{~B} & \$ 10,000 & 0.80 \\\mathrm{C} & \$ 140,000 & 1.00 \\\mathrm{D} & \$ 75,000 & 1.20\\\text { Total }&\$375,000\end{array}$
What is the portfolio's beta? Do not round your intermediate calculations.

• A) 1.19
• B) 1.36
• C) 1.30
• D) 1.47
• E) 1.45

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Definitions:

Civil War

A war between citizens of the same country.

American Federalism

A system of government in which power is divided between a national (federal) government and various state governments.

Allocation of Responsibilities

The process of distributing tasks, duties, and powers among different levels of government or among departments within an organization.

Dual Federalism

A political theory wherein state and national governments are seen as distinct entities providing separate services, limiting the power of the national government.