Bill Dukes Has $100,000 Invested in a 2-Stock Portfolio

question 120

Multiple Choice

Bill Dukes has $100,000 invested in a 2-stock portfolio.$35,000 is invested in Stock X and the remainder is invested in Stock Y.X's beta is 1.50 and Y's beta is 0.70.What is the portfolio's beta?

• A)0.65
• B)0.72
• C)0.80
• D)0.89
• E)0.98

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Definitions:

Misery Index

An economic indicator that adds the unemployment rate to the inflation rate, purportedly to measure the health of an economy and the discomfort it may cause its citizens.

Rapidly

Describes something happening in a fast or quick manner.

Unemployment Rate

The concentration of individuals in the labor force who are jobless yet pursuing employment.

Employed

Refers to individuals who are currently working for pay or profit, including full-time, part-time, and temporary workers.