A Portfolio Is Composed of $2,000 Invested in Stock A,$3,000

question 88

Multiple Choice

A portfolio is composed of $2,000 invested in Stock A,$3,000 in Stock B,$4,000 in Stock C,and $5,000 in Stock D.What is the beta of the portfolio if the betas of Stock A,B,C,and D are 0.9,1.6,1.8 and 1.2,respectively?

• A) 1.03
• B) 1.26
• C) 1.41
• D) 1.65

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Definitions:

MR

The extra revenue that a firm gains when it sells an additional unit of output, essentially another term for marginal revenue.

AVC

Average Variable Cost, the total variable costs divided by the quantity of output produced.

ATC

Average Total Cost; the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.