Your Portfolio Is Comprised of 25% of Stock X, 65

question 183

Multiple Choice

Your portfolio is comprised of 25% of stock X, 65% of stock Y, and 10% of stock Z. Stock X has a beta of .79, stock Y has a beta of 1.23, and stock Z has a beta of 1.47. What is the beta of your
Portfolio?

• A) .93
• B) .99
• C) 1.04
• D) 1.09
• E) 1.14

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Definitions:

Accrued Salaries

Salaries and wages that have been earned by employees but not yet paid by the company, classified as a current liability.

Salary Expense

The total amount paid to employees in the form of salaries over a specific period of time as a part of operational costs.

Liabilities

Obligations a company owes to external parties, which can include loans, accounts payable, and other debts.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments, serving as the basis for financial statements preparation.