You Own $9,000 of Olympic Steel Stock That Has a Beta

question 30

Multiple Choice

You own $9,000 of Olympic Steel stock that has a beta of 2.5. You also own $7,000 of Rent-a-Center (beta = 1.2) and $8,000 of Lincoln Educational (beta = 0.4) . What is the beta of your portfolio?

• A) 1.18
• B) 1.07
• C) 1.42
• D) 1.53

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Definitions:

Tangible Gain

A clear and measurable benefit or advantage, often of a financial nature.

Utilitarianism

An ethical theory suggesting that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Ethical Dilemmas

Ethical Dilemmas are situations in which a person has to choose between two options, neither of which resolves the situation in an ethically acceptable manner.

Clear-Cut

Something that is easily understood or determined; unambiguous and straightforward.