If a Two-Stock Portfolio Is Equally Invested in Stocks with Betas

question 100

Multiple Choice

If a two-stock portfolio is equally invested in stocks with betas of 1.4 and 0.7,then the portfolio beta is:

• A) 0.70.
• B) 1.05.
• C) 1.40.
• D) 2.10.

---

Definitions:

Antioxidants

Substances that inhibit oxidation, protecting cells against free radicals.

Glycolysis

The metabolic pathway in the cytoplasm where glucose is broken down to pyruvate, generating ATP and NADH.

Phosphoglyceraldehyde (PGAL)

A three-carbon sugar molecule that serves as an intermediate in several central metabolic pathways, importantly in photosynthesis and glycolysis.

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.