You Have a Portfolio with a Beta of 1

question 52

Multiple Choice

You have a portfolio with a beta of 1.25. What will be the new portfolio beta if you keep 80 percent of your money in the old portfolio and 20 percent in a stock with a beta of 1.75?

• A) 1.00
• B) 1.35
• C) 1.50
• D) 3.00

Recognize the treatment and recording of employee benefits, such as vacation pay and pension rights.

Understand the fundamentals of pension plans and their financial statement implications.

Understand and calculate the quick ratio to assess a company's ability to meet its short-term obligations without selling inventory.

Identify the components of quick assets.

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Definitions:

Hunger

The physiological need for food, experienced as a compelling sensation prompting individuals to eat.

Metabolic Rate

The rate at which the body consumes energy to maintain basic bodily functions like breathing, circulation, and cell production.

Homeostatic System

A system that regulates its internal environment and tends to maintain a stable, constant condition of properties like temperature or pH.

Settling Point

The Settling Point is a conjectured equilibrium in which factors such as metabolism, appetite, and physical activity balance out to determine one's body weight.