You Have a Portfolio with a Beta of 3

question 19

Multiple Choice

You have a portfolio with a beta of 3.1. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 4.5?

• A) 3.31
• B) 3.51
• C) 3.61
• D) 3.71

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Definitions:

Income Statement

A financial document showing a company's revenue, expenses, and profits over a specific period.

Balance Sheet

A report detailing a corporation's assets, liabilities, and owners' equity at a particular moment.

Comparative Data

Information presented for two or more periods to facilitate quantitative analysis, allowing for trend analysis and benchmarking.

Operating Expenses

Costs incurred during the normal operations of a business, excluding costs related to the production of goods or services.