Your Portfolio Had a Beta of 1

question 128

Multiple Choice

Your portfolio had a beta of 1.233.The portfolio included two stocks.The first stock had a beta of 0.7 and the second had a beta of 1.1.What were the portfolio weights for each stock?

• A) -0.333 in stock 1; 1.333 in stock 2
• B) -0.333 in stock 2; 1.333 in stock 1
• C) 0.333 in stock 1; 0.667 in stock 2
• D) 0.333 in stock 2; 0.667 in stock 1
• E) None of the above.

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Definitions:

China

A country in East Asia, known for its vast history, large population, and significant influence on global economics and politics.

Literacy Rates

The percentage of people in a specific age group who have the ability to read and write within a given population.

Global South

A term used to describe countries located primarily in the Southern Hemisphere, often focusing on those with developing or emerging economies.

Global North

A term referring to the wealthier, industrialized countries primarily located in the Northern Hemisphere, contrasted with the less developed Global South.