Table 8.3 Consider the Following Two Securities X and Y

question 12

Multiple Choice

Table 8.3
Consider the following two securities X and Y.
-Using the data from Table 8.3,what is the beta for a portfolio with two-thirds of the funds invested in X and one-third invested in Y?

• A)0.88
• B)1.17
• C)1.33
• D)1.67

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Definitions:

Telephone Service

A communication service provided through electrical transmission of voice, fax, or other information.

Medical Care

Professional services provided by doctors, nurses, dentists, and other health professionals to treat or prevent health problems and enhance well-being.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes infinitely in response to any change in price, typically represented with a horizontal demand or supply curve.

Relatively Inelastic

A term used to describe a situation where the demand or supply for a good or service is less responsive to changes in price.