Determine the Beta of a Portfolio Consisting of Equal Investments

question 51

Multiple Choice

Determine the beta of a portfolio consisting of equal investments in the following common stocks

• A)1.05
• B)1.00
• C)1.10
• D)0.95

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Definitions:

Specified Interval

A defined range of values within which a particular parameter or statistic is expected to lie.

Success Probability

The likelihood or chance of an event happening, particularly used in the context of achieving a specific outcome.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure, such as speed (distance per unit of time) or interest rate (interest per unit of time or per amount of principle).

Successes Occur

Instances in which an outcome meets the defined criteria for success in an experiment or set of observations.