What Is the Beta of a Three-Stock Portfolio Including 25

question 90

Multiple Choice

What is the beta of a three-stock portfolio including 25% of stock A with a beta of .90,40% of stock B with a beta of 1.05,and 35% of stock C with a beta of 1.73?

• A) 1.0
• B) 1.17
• C) 1.22
• D) 1.25

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Definitions:

Efficiency

The optimal allocation and use of resources to achieve the best possible output or outcome with the least waste of time and effort.

Equilibrium

A state in a market where demand equals supply, resulting in a stable price for a good or service.

Market Equilibrium

The state where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable market price.

Economists

Experts focused on analyzing how goods and services are produced, distributed, and consumed.