Table 8.3 Consider the Following Two Securities X and Y

question 8

Multiple Choice

Table 8.3
Consider the following two securities X and Y.
-Using the data from Table 8.3, what is the portfolio expected return and the portfolio beta if you invest 35 percent in X, 45 percent in Y, and 20 percent in the risk-free asset?

• A) 12.5%, 0.975
• B) 12.5%, 1.975
• C) 15.0%, 0.975
• D) 15.0%, 1.975

---

Definitions:

Farm Commodities

Basic agricultural products that are used both for consumption and as inputs in the production of other goods.

Food Products

Food products encompass items that are processed, prepared, and packaged to be consumed as meals or snacks.

Price Elasticity Coefficient

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating sensitivity to price changes.

Farm Products

Goods that are produced by farming activities, such as crops, livestock, and other agricultural commodities.