What Is the Beta of the Following Portfolio A) 112
B) 1

question 17

Multiple Choice

What is the beta of the following portfolio? $$\begin{array} { c l c } & \text { Amount } & \text { Security } \\\text { Stock } & \text { Invested } & \text { Beta } \\\text { A } & \$ 14,200 & 1.39 \\\text { B } & \$ 23,900 & .98 \\\text { C } & \$ 8,400 & 1.52\end{array}$$

• A) 1.12
• B) 1.01
• C) 1.05
• D) 1.20
• E) 1.23

---

Definitions:

Introduction

The initial section or the beginning part of a document, presentation, or text, aiming to give an overview or background of the subject matter.

Long-Run Equilibrium

A state where supply equals demand and all markets are in balance, typically achieved over a period where all inputs can be adjusted.

Perfectly Competitive

A market structure characterized by a large number of small firms, with free entry and exit, where no single firm can influence the market price.

Monopolistically Competitive

An economic framework where numerous companies offer products that are alike but not exactly the same, granting them a certain level of influence over the market.