Suppose That Google Stock Has a Beta of 1

question 108

Multiple Choice

Suppose that Google Stock has a beta of 1.06 and Boeing stock has a beta of 1.31.The beta on a portfolio that consists of 30% Google stock and 70% Boeing stock is closest to:

• A) 1.06
• B) 1.14
• C) 1.19
• D) 1.24

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Definitions:

Behavioral Economics

A branch of economics that uses social and psychological factors in understanding decision making. It is particularly concerned with the limits of rationality in those decisions.

Sociology

The study of social behavior, society, patterns of social relationships, social interaction, and culture.

Psychology

the scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Threats

Potential sources of harm or adverse effects to something or someone.