Your Portfolio Has a Beta of 1

question 103

Multiple Choice

Your portfolio has a beta of 1.12.The portfolio consists of 40 percent U.S.Treasury bills,30 percent stock A,and 30 percent stock B.Stock A has a risk-level equivalent to that of the overall market.What is the beta of stock B?

• A) 1.47
• B) 1.52
• C) 1.69
• D) 1.84
• E) 2.73

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Definitions:

Gate-Control Theory of Pain

A theory that suggests pain signals must pass through a "gate" in the spinal cord, which can be closed, thus blocking the pain signal, by factors in the brain or by physical stimulation of the nerves.

Kinesthetic Senses

The ability to sense body position, movement, and dynamics of the muscles and joints, contributing to our sense of proprioception.

Umami

The taste sensation produced by certain amino acids, often described as savory or meaty, recognized as one of the five basic tastes.

Two-Point Threshold

The minimum distance at which two points of contact can be felt as separate sensations, used to measure perceptual acuity or sensitivity.