A Portfolio Comprises Coke (Beta of 1

question 43

Multiple Choice

A portfolio comprises Coke (beta of 1.6) and Wal-Mart (beta of 0.6) . The amount invested in Coke is $10,000 and in Wal-Mart is $20,000. What is the beta of the portfolio?

• A) 0.93
• B) 0.84
• C) 1.03
• D) 0.98

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Definitions:

Utility Function

A representation in economics that maps a set of goods and services into a numerical level of utility (satisfaction or happiness) that a consumer derives from those goods and services.

Good 1

Typically refers to a specific item or category of goods within an economic model, where multiple goods are being considered for analysis or comparison.

Revenue-maximizing Price

The price level at which a company can generate the maximum total revenue, balancing between price per unit and the quantity sold.

Football Tickets

Certificates that allow admission to watch a football game.