If a Two-Stock Portfolio Is Equally Invested in Stocks with Betas

question 31

Multiple Choice

If a two-stock portfolio is equally invested in stocks with Betas of 1.4 and 0.7, then the portfolio Beta is:

• A)0.70.
• B)1.05.
• C)1.40.
• D)2.10

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Definitions:

Independent Clauses

These are groups of words that contain a subject and a verb and express a complete thought, capable of standing alone as a sentence.

Correct Tense

The appropriate use of verb tenses in a sentence to accurately convey the timing of actions.

Door Bell

An electronic device designed to emit a sound, or a series of sounds, when pressed, signaling the presence of a visitor at a door.

Party

A social gathering of invited guests, typically involving eating, drinking, and entertainment.