Your Portfolio Has a Beta of 1

question 61

Multiple Choice

Your portfolio has a beta of 1.18. The portfolio consists of 15% U.S. Treasury bills,30% in stock A,and 55% in stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?

• A) .55
• B) 1.10
• C) 1.24
• D) 1.40
• E) 1.60

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Definitions:

Rhetorical Analysis

The process of examining texts, speeches, or other forms of communication to understand how they persuade or inform audiences using various techniques.

Persuasive Strategies

Techniques employed to convince or influence others to adopt a particular viewpoint or action.

Dramatistic Analysis

A method in communication studies for examining motivations and actions within narratives by considering five elements: act, scene, agent, agency, and purpose.

Purpose

The reason for which something is done or created, or for which something exists.