An Individual's Portfolio Consists of Three Separate Assets

question 56

Multiple Choice

An individual's portfolio consists of three separate assets.Asset 1 has a beta of 1.4,asset 2 has a beta of .84 and asset 3 has a beta of 1.05.The investor has invested $240 in asset 1,$500 in asset 2,and $260 in asset 3.Calculate the portfolio beta.

• A) 1.03
• B) 1.17
• C) 1.09
• D) 0.93
• E) 0.85

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Definitions:

Agency Relationship

A legal relationship in which one party, the agent, acts on behalf of another, the principal, in dealings with third parties.

Tort Liability

Legal responsibility for damages caused by a civil wrong or injury other than breach of contract.

Employers

Organizations or individuals who hire others to perform services in exchange for compensation.

Independent Contractors

Individuals or entities hired to perform specific tasks or services for a company but are not considered employees of the company.