Suppose the Beta of a Four-Asset Portfolio Is 1

question 106

Multiple Choice

Suppose the beta of a four-asset portfolio is 1.8.The portfolio is composed of $1,500 invested in Stock W, $2,000 in Stock X, $2,500 in Stock Y, and $3,000 in Stock Z.What is the beta of Stock Z if the betas of Stock W, X, and Y are 0.7, 1.3, and 2.5, respectively?

• A)0.7
• B)1.1
• C)1.6
• D)2.1

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Definitions:

Physical Therapy

A treatment method aiming to alleviate pain, help recover from injury, improve mobility, or manage chronic conditions through physical methods such as exercises and massages.

Rehabilitation

A process of treatment and exercises aimed at restoring full function or enhancing the performance of an individual after illness, injury, or surgery.

Pain Management

The process of providing medical care that reduces or eliminates the discomfort and suffering of patients in pain.

American Heart Association

A nonprofit organization in the United States that funds cardiovascular medical research, educates consumers on healthy living, and fosters appropriate cardiac care.