A Portfolio Consists of Two Stocks and Has a Beta

question 58

Multiple Choice

A portfolio consists of two stocks and has a beta of 1.20.The first stock has a beta of 1.02 and comprises 30 percent of the portfolio.What is the beta of the second stock?

• A) 0.41
• B) 0.66
• C) 0.82
• D) 1.28
• E) 1.35

Recognize the importance of transparency and the role of organizations like Transparency International in promoting ethical business practices.

Understand different personal moral philosophies, such as utilitarianism and moral idealism, and their impact on ethical decision-making.

Understand the concept of bribery, corruption, and their common forms within the business context.

Recognize the role and significance of whistle-blowers in maintaining organizational ethics and integrity.

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Definitions:

Market Segmenting

The process of identifying and targeting discrete groups within a larger market, each with its own set of needs, preferences, or characteristics, for more focused marketing efforts.

Standardization

The process of making something conform to a standard.

Commercial Aircraft

Airplanes designed and utilized for transporting passengers and cargo, operated by airlines and leasing companies.

Checking Accounts

Bank accounts that allow for both deposits and withdrawals, typically used for day-to-day financial transactions.