Suppose That Google Stock Has a Beta of 1

question 10

Multiple Choice

Suppose that Google Stock has a beta of 1.06 and Boeing stock has a beta of 1.31.If the risk-free interest rate is 4% and the expected return from the market portfolio is 12%,then the expected return on a portfolio that consists of 30% Google stock and 70% Boeing stock is closest to:

• A) 12.5%
• B) 13.1%
• C) 13.5%
• D) 13.9%

---

Definitions:

Conformity Pressures

Social influences that encourage individuals to match the attitudes, beliefs, or behaviors of a group.

Brain Tissue

Composed of neurons and glial cells, it constitutes the physical substance of the brain, enabling mental and neural functions.

Big Five Traits

A model outlining five broad dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Thickness

The dimension between two surfaces of an object, often referring to how dense or wide it is in comparison to its length or height.