If Acme Dynamite Stock Has a Beta of

question 127

Multiple Choice

If Acme Dynamite stock has a beta of .8 and a standard deviation of 15% and Splat Paintball stock has a beta of 1.3 and a standard deviation of 9%,what is the beta of a portfolio comprised of equal weights of both securities?

• A) 24%
• B) 12%
• C) 18%
• D) 1.05
• E) 2.10

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