You Would Like to Combine a Risky Stock with a Beta

question 101

Multiple Choice

You would like to combine a risky stock with a beta of 1.76 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in the risky stock?

• A) 63.3 percent
• B) 49.6 percent
• C) 47.2 percent
• D) 56.8 percent
• E) 52.0 percent

Identify and correctly use exclamation marks in exclamatory sentences.

Identify and correctly use question marks in interrogative sentences.

Understand the factors influencing oxygen requirements in different-sized organisms.

Interpret the impact of various environmental and genetic factors on species survival and extinction.

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Definitions:

Laissez-Faire Society

A society where transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs, and enforced monopolies.

Social Control

Mechanisms, strategies, and processes that regulate individual and group behavior, aiming to maintain conformity and compliance within a society.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods that are determined mainly by competition in a free market.

Growth of the State

The process of increase in the size and scope of government activities, often referring to the expansion of its regulatory, taxing, and coercive capacities.