What Is the Beta of a 3-Stock Portfolio Including 25

question 92

Multiple Choice

What is the beta of a 3-stock portfolio including 25% of stock A with a beta of 0.90,40% of stock B with a beta of 1.05,and 35% of stock C with a beta of 1.73?

• A) 1.0
• B) 1.17
• C) 1.22
• D) 1.25

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Definitions:

Decision-Making Strategy

A methodological approach to choosing among different options or actions based on specific criteria, objectives, or principles.

Autocratic

A leadership style characterized by individual control over all decisions and little input from group members.

Charismatic Leadership

Leadership style based upon the leader’s (perceived) possession of charisma.

Personality Trait

Characteristic patterns of thought, emotion, and behavior that are relatively stable over time and across different situations.