Your Portfolio Is Comprised of 36 Percent of Stock X

question 56

Multiple Choice

Your portfolio is comprised of 36 percent of Stock X, 18 percent of Stock Y, and 46 percent of Stock Z. Stock X has a beta of 1.19, Stock Y has a beta of .87, and Stock Z has a beta of 1.26. What is the beta of your portfolio?

• A) 1.16
• B) 1.09
• C) 1.13
• D) 1.18
• E) 1.11

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Definitions:

Provisional Credits

Temporary credits issued to a bank account, often while a transaction is under review or a dispute is being resolved, which can be reversed depending on the outcome.

Dishonor of a Check

The refusal by a bank to pay the amount stated on a check due to insufficient funds or other reasons.

Reversed

A decision or process that has been changed to go in the opposite direction, often used in the context of judicial decisions.

Payor Bank

The bank that dispenses the payment on a written draft or check upon presentation.