What Is the Beta of a Portfolio If 20% of the Funds

question 65

Multiple Choice

What is the beta of a portfolio if 20% of the funds are invested in Stock A with a beta of 2, 30% in Stock B with a beta of 0.8, 15% in Stock C with a beta of 2.2, and the remainder in Stock D with a beta of 1.4?

• A)1.23
• B)1.46
• C)1.74
• D)1.98

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Definitions:

Nondirective Interview

An interviewing technique where the respondent leads the conversation, with minimum control exerted by the interviewer.

Hypothetical Incidents

Scenarios or situations that are imagined or theoretical used to assess reactions, decisions, or behaviors in a controlled environment.

Situational Interview

An interview in which an applicant is given a hypothetical incident and asked how he or she would respond to it

Non-Directive Interview

An interviewing technique where the interviewer asks open-ended questions, allowing the interviewee to lead the discussion.