Use the Following Information to Answer the Question(s)below

question 49

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-Suppose that Google stock has a beta of 1.06 and Boeing stock has a beta of 1.31.The beta on a portfolio that consists of 30% Google stock and 70% Boeing stock is closest to:

• A)1.06.
• B)1.14.
• C)1.19.
• D)1.24.

---

Definitions:

Second-grader

A student typically in the second grade of elementary school, usually 7 or 8 years old.

Fluid Intelligence

The capacity to solve novel problems, think quickly, and use abstract reasoning, distinct from learned knowledge.

Analytic Intelligence

The ability to analyze, evaluate, judge, compare, and contrast; it is one of the three types of intelligence proposed by Sternberg's triarchic theory of intelligence.

Reason

The mental capacity for processing information, making judgments, and solving problems; often regarded as a fundamental aspect of human cognition.