Lauren Has the Following Portfolio of Assets What Is the Beta of Lauren's Portfolio?
A) 1

question 106

Multiple Choice

Lauren has the following portfolio of assets. $$\begin{array}{l}\text { Proportion of }\\\begin{array} { l c c } \text { Asset } & \text { Portfolio } & \text { Beta } \\\hline \text { A } & 20 \% & 1.60 \\\text { B } & 35 \% & 1.05 \\\text { C } & 45 \% & 0.85\end{array}\end{array}$$ What is the beta of Lauren's portfolio?

• A) 1.07
• B) 1.16
• C) 1.05
• D) 1.00

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Definitions:

Ucc

The Uniform Commercial Code (UCC) is a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions.

Negotiable Instruments

Financial documents that promise to pay the bearer or named party a specific sum of money, either on demand or at a set time.

Investment Securities

Financial instruments such as stocks, bonds, and mutual funds that are purchased with the expectation of earning a return.

Sales Of Goods

Transactions or agreements involving the exchange of tangible, movable items between parties for money or other consideration.