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:

Transference

Transference is a phenomenon in psychoanalysis where patients project feelings, attitudes, and desires onto their therapist, reflecting feelings associated with significant figures in their past.

Psychoanalytic Perspective

A theory of psychology that focuses on unconscious motivations, conflicts, and childhood experiences in shaping personality and behavior.

Therapy Relationship

The professional and interpersonal bond between a therapist and their client, crucial for effective therapy.

Genuine Self-Esteem

A true sense of one's worth and abilities, not artificially inflated by external validation, but rooted in self-acceptance and realistic self-appraisal.