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

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Definitions:

Symbolic Interactionist

A perspective in sociology that focuses on the significance of meaning and symbols in human interactions and how social reality is constructed through them.

Conflict Theorist

A social scientist who studies the ways in which different groups in society struggle for power, often focusing on issues of inequality, discrimination, and social change.

A Functionalist

Pertains to a perspective in sociology that views society as a complex system whose parts work together to promote solidity and stability.

Gender Identity

An individual's personal sense of their own gender, which may or may not correspond with the sex assigned at birth.