You Would Like to Create a Portfolio That Is Equally

question 46

Multiple Choice

You would like to create a portfolio that is equally invested in a risk-free asset and two stocks.One stock has a beta of 1.15.What does the beta of the second stock have to be if you want the portfolio to be equally as risky as the overall market?

• A)0.78
• B)0.97
• C)1.23
• D)1.55
• E)1.85

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Definitions:

Activity In Brain

Refers to the various physiological and chemical processes that occur within the brain, including neural activity, that underlie thought, emotion, and behavior.

Thematic Apperception Test

A projective psychological test that involves telling stories about ambiguous scenes, aimed at uncovering underlying motivations and feelings.

Bender-Gestalt Test

A psychological assessment used to evaluate visual-motor functioning and neurological impairments.

Sensorimotor Skills

Abilities that involve a combination of sensory input and motor response, utilized in the performance of complex tasks.