You Invest $600 in a Security with a Beta of 1.2

question 69

Multiple Choice

You invest $600 in a security with a beta of 1.2 and $400 in another security 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:

Magical Thinking

Magical thinking is the belief that one's thoughts, words, or actions can bring about something in the external world simply by personal will, bypassing the laws of physics and causation.

Self-Concept

Self-concept is the understanding or perception that one has of oneself, including beliefs about one's attributes, like skills, abilities, and appearance.

Global Empathy

The capacity to understand and share the feelings of people from diverse cultures and backgrounds across the world.

Egocentric Empathy

The limited ability to understand another's perspective, assuming others feel the same as oneself.