A Portfolio Has 40% Invested in Asset 1,50% Invested in Asset

question 45

Multiple Choice

A portfolio has 40% invested in Asset 1,50% invested in Asset 2 and 10% invested in Asset 3.Asset 1 has a beta of 1.2,Asset 2 has a beta of 0.8 and Asset 3 has a beta of 1.8,what's the beta of the portfolio?

• A) 1.27
• B) 0.80
• C) 1.06
• D) 1.20
• E) Cannot tell from given information

---

Definitions:

Mental Representations

Internal cognitive symbols that represent external reality, which are used in the process of thinking and understanding the world.

Violation-of-Expectation

A method used in developmental psychology research to study infants' understanding of physical and social world by evaluating their reactions to surprising or unexpected events.

Stimulus

Something that causes a response in an organism, sensory system, or psychological process.

Physical Laws

The fundamental principles that describe the forces and properties of nature, governing the behavior of the physical universe.