Martin Ortner Holds a $200,000 Portfolio Consisting of the Following

question 132

Multiple Choice

Martin Ortner holds a $200,000 portfolio consisting of the following stocks: $\begin{array}{lll}Stock&Investment&Beta\\A&\$ 50,000 & 0.95\\B&50,000 & 0.80 \\C&50,000 & 1.00 \\D&50,000 & 1.20\\Total&\$ 200,000 \\\end{array}$
What is the portfolio's beta?

• A) 0.938
• B) 0.988
• C) 1.037
• D) 1.089
• E) 1.143

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Definitions:

Cause And Effect

A principle signifying that an action or phenomenon invariably leads to or results in another, typically used to explain causality in events or processes.

Manipulating Factors

Variables that researchers or experimenters actively change or control to observe their effects on other variables.

Semantic Differential Scale

A survey or questionnaire tool that measures the connotative meaning of objects, events, or concepts across a range of polar adjectives.

Likert Scale

A survey-based measurement system used to gauge opinions or attitudes by offering a range of response options from one extreme to another.