Table 8.3 Consider the Following Two Securities X and Y

question 197

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)9.875%,0.975
• B)10.125,1.025
• C)8.875%,0.975
• D)20.5%,1.250

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Definitions:

Liabilities

Financial obligations or debts that a business or individual owes to others, which must be settled over time.

Total Return

The overall financial gain or loss on an investment over a specified time period, including both capital gains and any income received.

Long-Term Growth

The process of expanding or improving a business, investment, or economic endeavor over a considerable period, aiming for sustained and stable progress.

Functional Expenses

In non-profit accounting, these are the expenses directly related to the organization's programmatic, fundraising, and administrative activities.