You Own a $210,000 Portfolio That Is Invested in Stock

question 5

Multiple Choice

You own a $210,000 portfolio that is invested in stock A andB. The portfolio beta is equal to the market beta. Stock A has an expected return of 18.7 percent and has a beta of 1.42. Stock B has a beta of 0.88. What is the value of your investment in stock A?

• A) $38,600
• B) $42,333
• C) $44,499
• D) $46,666
• E) $47,200

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Definitions:

Directive Behaviors

Directive behaviors in leadership involve providing specific instructions, guidance, and oversight to ensure tasks are completed effectively and efficiently.

Adaptive Leaders

Individuals who can adjust their leadership style and strategies to meet the needs of different situations and environments.

Crystallize

Refers to the process of making a plan, idea, or belief fully formed and clear.

Mobilize

To prepare and organize resources or people for active service or use.