A Stock Has a Beta of 1

question 34

Multiple Choice

A stock has a beta of 1.56 and an expected return of 17.3 percent.A risk-free asset currently earns 5.1 percent.If a portfolio of the two assets has a beta of 1.06,what are the portfolio weights?

• A)Stock weight = 0.28; risk-free weight = 0.72
• B)Stock weight = 0.032; risk-free weight = 0.68
• C)Stock weight = 0.44; risk-free weight = 0.56
• D)Stock weight = 0.68; risk-free weight = 0.32
• E)Stock weight = 0.72; risk-free weight = 0.28

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Definitions:

Symbolic Culture

The aspect of culture that consists of the symbols, language, norms, and values that people create and share to communicate and make sense of the world.

Political Party

A structured group of people who share similar political aims and opinions, and aim to influence public policy by getting its candidates elected to public office.

Material Culture

Refers to the physical objects, resources, and spaces that people use to define their culture. These include homes, neighborhoods, cities, schools, churches, synagogues, temples, mosques, offices, factories and plants, tools, means of production, goods and products, stores, and so forth.

Designer Labels

Designer Labels refer to brands, particularly in the fashion industry, that are recognized for their high-quality, exclusivity, and their designer's name, often associated with status and luxury.