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:

Homeostasis

The process by which biological systems maintain stability and equilibrium while adjusting to conditions that are optimal for survival.

Incentive

A thing that motivates or encourages someone to do something, often used in contexts of economics, psychology, and behavior management.

Hunger

The physiological need for food accompanied by the sensation of wanting to eat.

Yerkes-Dodson Law

A hypothesis that proposes there's a peak arousal level for optimal performance, indicating that performance can be adversely affected by either too low or too high levels of arousal.