Your Portfolio Has a Beta of 1

question 85

Multiple Choice

Your portfolio has a beta of 1.18.The portfolio consists of 20% U.S.Treasury bills,30% in stock A,and 50% in stock B.Stock A has a risk-level equivalent to that of the overall market.What is the beta of stock B?

• A).55
• B)1.10
• C)1.24
• D)1.60
• E)1.76

---

Definitions:

Different Function

Diverse roles or activities that entities or processes serve within a system or mechanism.

Parallel Evolution

The process whereby related species independently evolve similar traits, usually as a result of having to adapt to similar environments or ecological niches.

Cis-Regulatory Elements

DNA sequences in the genome that regulate the transcription of adjacent genes, influencing their expression without altering the genetic code.

Morphological Adaptation

Morphological adaptation involves changes in an organism's physical structure to improve its chances of survival in its environment.