A Portfolio Contains Two Assets

question 97

Multiple Choice

A portfolio contains two assets. The first asset comprises 40% of the portfolio and has a beta of 1.2. The other asset has a beta of 1.5. The portfolio beta is:

• A) 1.35
• B) 1.38
• C) 1.42
• D) 1.50
• E) 1.55

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Definitions:

Note Receivable

A written promise that signifies an entity or person will receive a specified sum of money at a defined future date.

Past-due Account

An account that has not been paid by the due date, indicating overdue payments.

Receivable

Amounts of money owed to a company by customers or clients for goods or services delivered but not yet paid for.