A Portfolio Consists of Two Stocks and Has a Beta

question 41

Multiple Choice

A portfolio consists of two stocks and has a beta of 1.07.The first stock has a beta of 1.48 and comprises 38 percent of the portfolio.What is the beta of the second stock?

• A).41
• B).66
• C).82
• D)1.28
• E)1.35

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Definitions:

Prevalence

The percentage of individuals in a population who are identified as having a certain condition during a particular time frame.

Incidence

The rate at which new cases of a disease or condition appear over a certain period of time, typically per year.

Placebo Control Group

In a therapy outcome study, group of people whose treatment is an inactive substance (to compare with the effects of a drug) or a nontheory-based therapy providing social support (to compare with the effects of psychotherapy).

Ethical Problem

A situation that requires a person to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).