You Own $9,000 of Olympic Steel Stock That Has a Beta

question 30

Multiple Choice

You own $9,000 of Olympic Steel stock that has a beta of 2.5. You also own $7,000 of Rent-a-Center (beta = 1.2) and $8,000 of Lincoln Educational (beta = 0.4) . What is the beta of your portfolio?

• A) 1.18
• B) 1.07
• C) 1.42
• D) 1.53

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Definitions:

Accounting Services

Professional services that include the maintenance, auditing, and reporting of financial statements and records for individuals or businesses.

Free Foreign Trade

The exchange of goods and services across international borders or territories without the imposition of restrictions such as tariffs, quotas, or other barriers.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, indicating more money leaving the economy than entering it.

Exports

The act of selling goods or services produced in one country to other countries.