You Have a $50,000 Portfolio Consisting of Intel,GE and Con

question 69

Multiple Choice

You have a $50,000 portfolio consisting of Intel,GE and Con Edison.You put $20,000 in Intel,$12,000 in GE and the rest in Con Edison.Intel,GE and Con Edison have betas of 1.3,1.0 and 0.8 respectively.What is your portfolio beta?

• A) 1.048
• B) 1.033
• C) 1.000
• D) 1.037

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Definitions:

Structurally Isomeric

Pertains to molecules that have the same molecular formula but feature different physical structures.

Amines

Organic compounds and functional groups containing a basic nitrogen atom with a lone pair, deriving from ammonia by replacing one or more hydrogen atoms with organic groups.

Soluble

Capable of being dissolved in a solvent, such as a liquid, especially water.

Water

A polar inorganic compound that is at room temperature a tasteless and odorless liquid, which is nearly colorless apart from an inherent hint of blue.