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

question 92

Multiple Choice

What is the beta of a portfolio that consists of the following?
$$\begin{array} { c r r } \text { Security } & \text { Invested } & \text { Beta } \\\text { E } & \$ 14,000 & .59 \\\text { F } & \$ 22,000 & 1.46 \\\text { G } & \$ 25,000 & 2.20 \\\text { H } & \$ 19,000 & 1.67\end{array}$$

• A)1.21
• B)1.34
• C)1.36
• D)1.49
• E)1.59

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Definitions:

Credit Column

is a section in financial statements or ledgers where increases in liability, equity, and revenue accounts or decreases in asset and expense accounts are recorded.

Drawing Account

An account that tracks amounts withdrawn from a business by its owners for personal use, which reduces the owner's equity.

Capital Account

An account on a nation's balance of payments that records all transactions related to asset changes, including investments and loans.

Liabilities

Financial obligations or debts owed by a business to outsiders, which are required to be settled in the future.