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:

Neural Impulses

Electrical signals transmitted along neurons that facilitate the communication between the brain and different parts of the body.

Kinesthesia

The perception that recognizes the position of the body, the mass it carries, or the motion of the muscles, tendons, and joints.

Vestibular Sense

A sensory system located in the inner ear that is responsible for providing the brain with information about motion, head position, and spatial orientation.

Sensory Experience

The immediate, direct experience or perception obtained through the senses.