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

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Definitions:

Mass Production Line

A method of manufacturing that uses assembly lines and automation to produce a large number of identical items quickly.

Significance Level

The probability of rejecting the null hypothesis when it is actually true, often represented by alpha (α).

Production Line 1

Generally refers to the assembly or manufacturing sequence in a factory where a specific product is produced.

Pooling

The act of combining data or resources from different sources or groups to form a single set, often done to increase statistical power or to facilitate analysis.