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:

Sensory Capacities

The abilities of an organism to receive, process, and respond to sensory stimuli from the environment, involving the use of sensory organs.

Motor Skills

Abilities required to perform movements and tasks, involving the coordination of muscles and nervous system; categorized into fine (small movements) and gross (larger movements) motor skills.

Developmental Period

A timeframe in an individual's life during which significant growth, changes, and maturation occur.

Demanding

Requiring a lot of effort, skill, or attention to detail; often associated with challenging situations or requests.