Megan Ross Holds the Following Portfolio What Is the Portfolio's Beta?
A) 1

question 87

Multiple Choice

Megan Ross holds the following portfolio: $\begin{array}{lrl}\text { Stock }&\text { Investment }&\text { Beta }\\\mathrm{A} & \$ 150,000 & 1.40 \\\mathrm{~B} & 50,000 & 0.80 \\\mathrm{C} & 100,000 & 1.00 \\\mathrm{D} & 75,000 & 1.20\\\text { Total }&\$375,000\end{array}$
What is the portfolio's beta?

• A) 1.06
• B) 1.17
• C) 1.29
• D) 1.42
• E) 1.56

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Definitions:

Temporarily Operating

A status of business or facility operation for a limited period or until a specific event occurs, often used in contexts of transitional management or during emergencies.

Production Possibilities Curve

The Production Possibilities Curve is a graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed.

Economic Growth

The escalation in the real value of products and services an economy produces, adjusted for inflation, over time.

Outward Shift

Refers to an expansion in an economy's production possibility frontier, indicating an increase in the ability to produce goods and services.