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:

Obsessive-Compulsive Disorder

A mental health disorder characterized by unreasonable thoughts and fears (obsessions) that lead to compulsive behaviors.

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, mental and interpersonal control at the expense of flexibility, openness, and efficiency.

Psychological abnormality

Psychological abnormality refers to behavioral, emotional, or cognitive patterns that deviate significantly from the norm, potentially impairing functioning or causing distress.

Medication compliance

The degree to which a patient correctly follows medical advice regarding the timing, dosage, and frequency of their prescribed medication.