Suppose the Beta of a Four-Asset Portfolio Is 1

question 44

Multiple Choice

Suppose the beta of a four-asset portfolio is 1.8.The portfolio is composed of $1,500 invested in Stock W,$2,000 in Stock X,$2,500 in Stock Y,and $3,000 in Stock Z.What is the beta of Stock Z if the betas of Stock W,X,and Y are 0.7,1.3,and 2.5,respectively?

• A) 0.7
• B) 1.1
• C) 1.6
• D) 2.1

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Definitions:

Carbon Dioxide Concentration

The amount of carbon dioxide molecules present in a particular volume of atmosphere, typically expressed in parts per million by volume.

Temperature Decreased

A condition where the environmental or specific area's temperature lowers from a previous point.

Years Ago

A term used to reference a specific amount of time before the present, often used in historical and geological contexts.

Global Warming

The long-term rise in Earth's average surface temperature, driven by human activities that increase greenhouse gases in the atmosphere.