A Portfolio Is Comprised of Two Stocks

question 71

Multiple Choice

A portfolio is comprised of two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.21. Stock B has a beta of .95. What is the portfolio beta?

• A).96
• B)1.05
• C)1.12
• D)1.19
• E)1.21

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Definitions:

Resamples

The process of drawing repeated samples from the same initial dataset, typically used in bootstrap and other resampling methodologies.

Standard Error

A measure of the sampling distribution variability of a statistic, often used to describe the accuracy of a sample mean estimate.

Sample Median

A measure of central tendency that identifies the middle value in a sorted sample set.

Resamples

The action of drawing repeated samples from the same data set, typically used in bootstrap methods for statistical inference.