A Portfolio Consists of Two Stocks and Has a Beta

question 80

Multiple Choice

A portfolio consists of two stocks and has a beta of 1.20. The first stock has a beta of 1.02 and comprises 30% of the portfolio. What is the beta of the second stock?

• A).41
• B).66
• C).82
• D)1.28
• E)1.35

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Definitions:

Negative Feelings

Emotional states or reactions that are unpleasant or undesirable such as sadness, anger, or fear.

Procedures

Procedures are established methods or steps followed to accomplish a specific task or solve a problem.

Active Listening

Fully concentrating, understanding, responding, and remembering what is being said in a conversation.

Carl Rogers

An influential American psychologist who founded the humanistic approach to psychology, emphasizing the importance of self-actualization and client-centered therapy.