If a Two-Stock Portfolio Is Equally Invested in Stocks with Betas

question 100

Multiple Choice

If a two-stock portfolio is equally invested in stocks with betas of 1.4 and 0.7,then the portfolio beta is:

• A) 0.70.
• B) 1.05.
• C) 1.40.
• D) 2.10.

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Definitions:

Polling Booth

A private area in a polling station where voters go to mark their ballots during an election, ensuring the confidentiality of their vote.

Ratio

A mathematical expression that compares two numbers or quantities, showing the relative size or amount of one to the other.

Absolute Frequency

The total count of occurrences or instances of a specific event or characteristic in a data set.

Chemical Element

A substance that cannot be broken down into simpler substances by chemical means and is identified by the number of protons in its atoms.