Your Portfolio Is Comprised of 30 Percent of Stock X,50

question 33

Multiple Choice

Your portfolio is comprised of 30 percent of Stock X,50 percent of Stock Y,and 20 percent of Stock Z.Stock X has a beta of .64,Stock Y has a beta of 1.48,and Stock Z has a beta of 1.04.What is the portfolio beta?

• A)1.01
• B)1.05
• C)1.09
• D)1.14
• E)1.18

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Definitions:

Municipal Bonds

Bonds issued by local municipalities to finance public projects such as schools and highways; interest income is often exempt from federal income taxes.

Investment Interest Expense

The cost of interest on money borrowed to purchase taxable investments, which can sometimes be deducted from income for tax purposes.

Job Hunting

The process of actively seeking new employment, including activities such as applying for jobs, networking, and interviewing.

Deductible

The amount that a taxpayer must pay out-of-pocket before an insurance company will pay any expenses.