You Have a Portfolio Consisting of 20% Boeing (Beta =

question 44

Multiple Choice

You have a portfolio consisting of 20% Boeing (beta = 1.3) and 40% Hewlett-Packard (beta = 1.6) and 40% McDonald's stock (beta = 0.7) . How much market risk does the portfolio have?

• A) This portfolio has 18% less risk than the general market.
• B) This portfolio has 28% more risk than the general market.
• C) This portfolio has 18% more risk than the general market.
• D) This portfolio has 28% less risk than the general market.

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Definitions:

Cost Report

A financial report that details the costs associated with a specific project or segment of a business.

Company's Strategy

An organization's plan for achieving its long-term goals and objectives, including its approach to growth and competition.

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries, raise revenue, or both.

Global Transportation

The movement of goods and services across the globe, utilizing various modes of transportation to connect markets and supply chains.