A Stock Has a Beta of 1

question 41

Multiple Choice

A stock has a beta of 1.30 and an expected return of 16 percent. The risk-free rate is 5 percent. If a portfolio of the two assets has an expected return of 13 percent, what is the beta of the portfolio?

• A) 1.06
• B) 0.87
• C) 1.02
• D) 0.95
• E) 0.91

---

Definitions:

Insecure-resistant Attachment

A type of attachment characterized by children who become extremely distressed upon separation from their caregivers, but are ambivalent or resistant upon the caregiver's return.

Antisocial Behavior

Refers to actions that harm or lack consideration for the well-being of others, often violating social norms.

Disorganized-disoriented Attachment

A type of attachment seen in children who display inconsistent and erratic behaviors towards caregivers, often as a result of trauma.

Insecure-resistant Attachment

A type of attachment characterized by children who are anxious and uncertain about exploration and exhibit distress when separated from their caregivers but are ambivalent upon their return.