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Rick Kish Has a $100,000 Stock Portfolio

question 66

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Rick Kish has a $100,000 stock portfolio.Thirty-two thousand dollars is invested in a stock with a beta of 0.75 and the remainder is invested in a stock with a beta of 1.38.These are the only two investments in his portfolio.What is his portfolio's beta?

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Definitions:

Alternator

A machine used to generate AC by rotating conductors through a magnetic field.

Capacitance

The ability of a system to store an electrical charge per unit voltage, represented in farads.

Line Current

The current that flows through the conductors of an electrical distribution system or in any single conductor.

Inductance

A characteristic of an electrical conductor wherein an alteration in the current passing through it generates an electromotive force within the conductor and in nearby conductors due to mutual inductance.

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