You Would Like to Create a Portfolio That Is Equally

question 10

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 1.14. 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) 0.62
• B) 0.97
• C) 1.23
• D) 1.55
• E) 1.86

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Definitions:

BED

Binge Eating Disorder; a psychological disorder characterized by recurrent episodes of eating large quantities of food, often quickly and to the point of discomfort, followed by feelings of guilt or shame.

Domestic Violence

A pattern of abusive behavior in any relationship that is used by one partner to gain or maintain power and control over another intimate partner.

Gender Roles

Social and behavioral norms that are considered appropriate for individuals of a specific sex in the context of a particular culture.

Violent Tendencies

refers to inclinations or propensities toward aggressive or harmful behaviors.