Tom O'Brien Has a 2-Stock Portfolio with a Total Value

question 109

Multiple Choice

Tom O'Brien has a 2-stock portfolio with a total value of $100,000.$37,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42.What is his portfolio's beta?

• A)1.17
• B)1.23
• C)1.29
• D)1.35
• E)1.42

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Definitions:

Data

Information collected for reference or analysis, often used in making decisions or understanding conditions.

Scatterplot

A type of graph used in statistics to display values for two variables for a set of data, showing the relationship between them.

Points

In various contexts, a numerical value representing a quantity, score, or position.

Influential Points

In statistical analysis, data points that have a significant impact on the outcome of a linear regression or other model.