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:

Directors

Individuals elected by shareholders to manage a corporation's affairs and make significant business decisions.

Typical Dissolution

The common process of legally dissolving a business or partnership, involving settling debts and distributing remaining assets.

Board of Directors

A group of individuals elected to represent shareholders and oversee the management and major decisions of a corporation.

Shareholders

are individuals or entities that own shares in a corporation, giving them a stake in the company's ownership and sometimes influencing its governance.