A Stock Has a Beta of 1

question 32

Multiple Choice

A stock has a beta of 1.24,an expected return of 13.68 percent,and lies on the security market line.A risk-free asset is yielding 2.8 percent.You want to create a $6,000 portfolio consisting of Stock A and the risk-free security such that the portfolio beta is 0.65.What rate of return should you expect to earn on your portfolio?

• A)8.50 percent
• B)9.16 percent
• C)9.33 percent
• D)9.41 percent
• E)9.56 percent

Recognize the significance of panel studies in longitudinal research.

Understand the application of different types of questions based on the dimensions of variables in survey research.

Grasp the importance and techniques of sampling in research methodology.

Analyze the impact of interviewer behavior on respondent answers and identify interviewer bias.

---

Definitions:

ExampleRecursion

ExampleRecursion typically refers to a demonstration or example that illustrates how recursion works, which is a method where the solution to a problem depends on solutions to smaller instances of the same problem.

Base Case

A condition within a recursive function that does not recurse, stopping the recursive calls and allowing the function to begin returning.

Recursive Method

A method in programming that calls itself in order to solve a problem by breaking it down into simpler subproblems.

Precondition

A condition that must be true before a function or operation is executed, ensuring that the function's or operation's assumptions hold.