You Invest 50% of Your Money in Security a with a Beta

question 32

Multiple Choice

You invest 50% of your money in security A with a beta of 1.6 and the rest of your money in security B with a beta of 0.7. The beta of the resulting portfolio is

• A) 1.40.
• B) 1.15.
• C) 0.36.
• D) 1.08.
• E) 0.80.

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Definitions:

Serial Communications Interface

A type of data transfer where information is sent sequentially, one bit at a time, over a communication channel.

WT ECU

A Weight Terminal Electronic Control Unit; a device designed for managing and monitoring weight-related data in vehicular and industrial systems.

Cruise Control

An electronic system that automatically controls the speed of a vehicle, maintaining a consistent speed as set by the driver.

Electrical Circuit

An electrical circuit is a pathway or loop that allows for the flow of electric current, consisting of sources, connections, and electrical components.