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:

Insurance Coverage

A contractual agreement where an individual or entity receives financial protection or reimbursement against losses from an insurance company.

Lease Contracts

Legal agreements in which one party (the lessee) pays the other (the lessor) for the use of an asset for a specified period of time.

Damage

Harm or injury to property or persons, which may be the basis for legal action to recover compensation.

Vehicle Identification Numbers (VINs)

A unique code used to identify individual motor vehicles, consisting of 17 characters.