What Is the Beta of a Portfolio That Consists of the Following

question 6

Multiple Choice

What is the beta of a portfolio that consists of the following?
$$\begin{array} { c r r } \text { Security } & \text {\$ Inveted } & \text { Beta } \\\text { A } & \$ 5,000 & .79 \\\text { B } & \$ 3,000 & 1.36 \\\text { C } & \$ 5,000 & 1.01 \\\text { D } & \$ 7,000 & 1.95\end{array}$$

• A)1.01
• B)1.24
• C)1.26
• D)1.29
• E)1.32

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Definitions:

Statistically Significant

A measure used to determine if the results of a study are unlikely to have occurred by random chance alone, often through a p-value.

Confidence Interval

A collection of values, drawn from sample data, that is presumed to capture the value of a not yet known population characteristic.

National Average

The average of a specific set of measurements or data points across the entire nation.

Confidence Interval

An estimate indicating the range within which a population parameter is likely to lie, with a certain degree of certainty, based on data from a smaller sample.