A Portfolio Is Comprised of Two Stocks

question 70

Multiple Choice

A portfolio is comprised of two stocks. Stock A comprises 55 percent of the portfolio and has a beta of 1.31. Stock B has a beta of .98. What is the portfolio beta?

• A) .98
• B) 1.03
• C) 1.08
• D) 1.16
• E) 1.22

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Definitions:

Cristae

The folds of the inner membrane of a mitochondrion that are involved in the electron transport chain of aerobic respiration, increasing the surface area for ATP production.

Mitochondria

Mitochondria are membrane-bound cell organelles responsible for generating most of the chemical energy needed to power the cell's biochemical reactions.

Plasma Membrane

The lipid bilayer that encloses the cytoplasm of a cell, regulating the passage of substances in and out of the cell.

Cytoplasm

The jelly-like substance within a cell enclosed by the cell membrane, excluding the nucleus, containing organelles and the site of most cellular activities.