Your Portfolio Has a Beta of 1

question 45

Multiple Choice

Your portfolio has a beta of 1.12. The portfolio consists of 20 percent U.S. Treasury bills, 50 percent stock A, and 30 percent stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?

• A) 1.47
• B) 1.52
• C) 1.69
• D) 1.84
• E) 2.07

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Definitions:

Tardive Dyskinesia

A neurological syndrome caused by the long-term use of neuroleptic drugs, characterized by repetitive, involuntary, purposeless movements.

Dopamine Receptors

Proteins located on the surface of neurons that bind to the neurotransmitter dopamine and play a crucial role in brain function.

Antipsychotic Drugs

Medications used to manage psychosis, particularly in disorders like schizophrenia and bipolar disorder, by affecting brain chemistry.

Tardive Dyskinesia

Rephrased: A serious side effect of antipsychotic medications, involving uncontrollable movements especially of the face and limbs.