What Is the Beta of a Portfolio Comprised of the Following

question 145

Multiple Choice

What is the beta of a portfolio comprised of the following securities?

• A) .86
• B) .97
• C) 1.02
• D) 1.11
• E) 1.22

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Definitions:

Income

The income earned, particularly on a consistent basis, from employment or investment returns.

Stock Concept

An economic term describing quantities measurable at a point in time, such as wealth or capital.

Flow Concept

A term used in economics and finance to describe quantities measured over a period of time, such as income or expenses.

Wealth

An abundance of valuable financial assets or physical possessions which can be transformed into forms that can be used for transactions.