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:

Botulin Toxin

Botulin Toxin is a powerful neurotoxin produced by the bacterium Clostridium botulinum, used medically to treat a variety of conditions by causing temporary muscle paralysis.

Acetylcholine Antagonist

Substances that block the action of acetylcholine, a key neurotransmitter in the nervous system, affecting various bodily functions.

Agonist

Substance that enhances neurotransmitter function.

Antagonist

Substance that blocks neurotransmitter function.