You Want to Construct a Portfolio Containing Equal Amounts of U.S.Treasury

question 53

Multiple Choice

You want to construct a portfolio containing equal amounts of U.S.Treasury bills and two stocks.If the beta of the first stock is 1.23 and the beta of the portfolio is 1.0,what does the beta of the second stock have to be?

• A) 0.77
• B) 1.23
• C) 0.23
• D) 1.77

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Definitions:

SAE Relay

A relay standardized by the Society of Automotive Engineers, designed for automotive electrical applications.

Control Circuit

Used in reference to both cranking systems and air brake systems. In a cranking system, it is the low-current switching circuit that connects the ignition switch with the magnetic switch. In an air brake system, it defines low-volume pilot air signals that are used to activate high-volume slave circuits.

Terminals

Terminals refer to the points at which electrical connections are made to a circuit, device, or a battery, facilitating the transfer of electrical power or signals.

Blade Fuses

Electrical components that protect circuits by melting and breaking the connection when current exceeds safe levels, characterized by their flat, plug-in design.