You Invest $200 in Security a with a Beta of 1.4

question 48

Multiple Choice

You invest $200 in security A with a beta of 1.4 and $800 in security B with a beta of 0.3. The beta of the resulting portfolio is

• A) 1.40.
• B) 1.00.
• C) 0.52.
• D) 1.08.
• E) 0.80.

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Definitions:

Sacroiliac Joint

The joint between the sacrum, at the base of the spine, and the iliac bones of the pelvis, which helps support and stabilize the body's weight.

Ilium

The broad, upper part of the pelvic bone, important for its role in weight bearing and muscle attachment.

Auricular Surface

a specific part of the ilium in the pelvic bone that connects with the sacrum to form the sacroiliac joint.

Female Pelves

The bony structure of the lower abdomen in females, distinguished by its broader, shallower shape compared to males for childbirth.