You Own $9,000 of Olympic Steel Stock That Has a Beta

question 30

Multiple Choice

You own $9,000 of Olympic Steel stock that has a beta of 2.5. You also own $7,000 of Rent-a-Center (beta = 1.2) and $8,000 of Lincoln Educational (beta = 0.4) . What is the beta of your portfolio?

• A) 1.18
• B) 1.07
• C) 1.42
• D) 1.53

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Definitions:

Independent Variable

The variable in an experiment that is manipulated by the researcher to observe its effect on the dependent variable.

Dependent Variable

In experimental and statistical research, the variable that is being tested and measured, and is expected to change as a result of manipulations to the independent variable.

Random Assignment

A method used in experiments where participants are assigned to different groups in a manner that ensures each has an equal chance of being placed in any group.

Experimental Group

A group of participants in a study that receives the treatment or intervention being tested, allowing researchers to assess the effect of the treatment.