A Portfolio Is Comprised of Two Stocks

question 57

Multiple Choice

A portfolio is comprised of two stocks.Stock A comprises 65 percent of the portfolio and has a beta of 1.31.Stock B has a beta of .98.What is the portfolio beta?

• A) 0.98
• B) 1.03
• C) 1.08
• D) 1.19
• E) 1.22

---

Definitions:

Innovation

The introduction of new ideas, devices, or methods, often leading to improvements in processes, products, or technology.

Relative Advantage

The degree to which an innovation is perceived as better than the idea, program, or product it replaces.

Adopter

An individual or entity that starts using a new product, innovation, or technology.

Flexibility

The ability to adapt to new, different, or changing requirements and conditions.