What Is the Beta of a Three-Stock Portfolio Including 25

question 48

Multiple Choice

What is the Beta of a three-stock portfolio including 25% of Stock A with a Beta of.90, 40% Stock B with a Beta of 1.05, and 35% Stock C with a Beta of 1.73?

• A)1.05
• B)1.17
• C)1.22
• D)1.25

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Definitions:

Negative Consequences

Unfavorable results or outcomes that arise as a result of an action, decision, or behavior, potentially causing harm or disadvantage.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event or outcome following a desired behavior increases the likelihood of that behavior being repeated in the future.

Intermittent Reinforcement

A conditioning schedule where a response is sometimes reinforced, leading to more robust behavioral responses.

Variable Interval Schedule

A reinforcement schedule in which a response is rewarded after an unpredictable amount of time has passed.