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:

Work in Process

Refers to materials and components that have begun their transformation to finished goods but are not yet completed.

Processing Department

A division within a manufacturing facility where a specific type of processing or assembly occurs, often as part of a production line.

Work in Process

Partially finished goods that are still undergoing manufacturing processes on the balance sheet.

Processing Department

A unit or section within a factory where a specific stage of production is carried out, such as mixing, assembling, or packaging.