Steve Brickson Currently Has an Investment Portfolio That Contains Four $\beta$

question 4

Multiple Choice

Steve Brickson currently has an investment portfolio that contains four shares with a total value equal to R80,000.The portfolio has a beta (( $\beta$ ) .) equal to 1.4.Steve wants to invest an additional R20,000 in a share that has ( $\beta$ ) . = 2.4.After Steve adds the new share to his portfolio, what will be the portfolio's beta?

• A) 1.6
• B) 1.9
• C) 2.0
• D) Not enough information is given to compute the portfolio's beta ( (\(\beta\)). ).
• E) None of the above is correct.

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Definitions:

Consumer Surplus

The contrast between the theoretical sum consumers are prepared to pay and the practical sum they pay for a good or service.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service compared to its market price, representing their net benefit.

The Nutty Nutcracker

A whimsical, often humorous adaptation of the traditional "Nutcracker" ballet, integrating various contemporary characters and pop culture references.

Willingness to Pay

The maximum amount a consumer is prepared to spend on a good or service.