You Invest $200 in Security a with a Beta of 1.4

question 48

Multiple Choice

You invest $200 in security A with a beta of 1.4 and $800 in security B with a beta of 0.3. The beta of the resulting portfolio is

• A) 1.40.
• B) 1.00.
• C) 0.52.
• D) 1.08.
• E) 0.80.

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Definitions:

Brachioradialis

A muscle of the forearm that flexes the forearm at the elbow.

Biceps Brachii

A muscle of the upper arm that flexes the elbow and rotates the forearm, consisting of two heads (long and short) originating from the shoulder and attaching to the forearm.

Flexor Carpi Ulnaris

A muscle of the forearm that acts to flex and adduct the wrist.

Metacarpal Bones

The five long bones in the hand that are connected to the carpals (wrist bones) and the phalanges (fingers).