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

---

Definitions:

Specialization and Exchange

The economic strategy where individuals or groups focus on the production of limited kinds of goods to trade for other goods.

Net Exports

The value of a country's total exports minus its total imports; a positive number indicates a trade surplus, while a negative number indicates a trade deficit.

GDP

The measure of all goods and services produced to their final stages within the confines of a country, valued in market or monetary terms over an identified period, defines the Gross Domestic Product.

Joseph Stiglitz

An American economist and a professor at Columbia University, known for his critical view on the management of globalization and neoliberal policies.