You Invest $600 in Security a with a Beta of 1.2

question 10

Multiple Choice

You invest $600 in security A with a beta of 1.2 and $400 in security B with a beta of 0.90.The beta of the resulting portfolio is

• A) 1.40
• B) 1.00
• C) 0.36
• D) 1.08
• E) 0.80

---

Definitions:

Budgeting

The process of creating a plan to spend your money, outlining projected income and expenses over a specific period.

Actual Results

The genuine outcomes of a business's operations, such as actual sales, expenses, or profit, as opposed to forecasts or estimates.

Personnel Expenses

Costs incurred by a company to employ its workforce, including wages, benefits, and taxes.

Client-visits

Client-visits refer to the occasions on which a service provider or salesperson goes to see clients in their place of business or home.