A Portfolio Is Composed of $2,000 Invested in Stock A

question 48

Multiple Choice

A portfolio is composed of $2,000 invested in Stock A, $3,000 in Stock B, $4,000 in Stock C, and $5,000 in Stock D.What is the beta of the portfolio if the betas of Stock A, B, C, and D are 0.9, 1.6, 1.8 and 1.2, respectively?

• A)1.03
• B)1.26
• C)1.41
• D)1.65

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Definitions:

Conformity Pressures

The influence that peers or societal norms have on an individual's behavior and beliefs, often leading to changes to match those norms.

Staff Meeting

A gathering of employees led by their employer to discuss issues, progress, or objectives related to the workplace.

Stanley Milgram's Experiment

A series of social psychology experiments conducted in the 1960s to test obedience to authority, revealing people's willingness to follow orders even when they cause harm.

Obedience

Compliance with an order, request, or law or submission to another's authority.