CBA Has a Beta of 1 $0.65$ B) $1.10$

question 19

Multiple Choice

CBA has a beta of 1.6 and WPL has a beta of 1.8.Given this,calculate the beta for a portfolio consisting of 65% in CBA and 35% in WPL.

• A) \( 0.65 \)
• B) \( 1.10 \)
• C) \( 1.30 \)
• D) \( 1.67 \)

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Definitions:

Continuous

A type of variable or data that can take an infinite number of values within a given range or interval.

Expected Value

Expected Value is a statistical concept that calculates the mean of all possible values of a random variable, weighted by their probabilities of occurrence.

Shopping Outlet

A retail store or complex that sells goods directly from manufacturers at reduced prices.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from their mean.