You Invest 50% of Your Money in Security a with a Beta

question 32

Multiple Choice

You invest 50% of your money in security A with a beta of 1.6 and the rest of your money in security B with a beta of 0.7. The beta of the resulting portfolio is

• A) 1.40.
• B) 1.15.
• C) 0.36.
• D) 1.08.
• E) 0.80.

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Definitions:

Self-Monitoring

The tendency to adapt behavior to fit the demands of the situation.

Self-Migration

Self-Migration describes the process by which individuals voluntarily move from one location to another, often for reasons such as employment, education, or personal growth.

Casual

something done without much thought or premeditation, often reflecting a relaxed or informal nature.

Formal

Relating to or involving the outward form or structure of something, often characterized by strict or established conventions or procedures.