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A Portfolio Comprises Cochlear (Beta of 1

question 9

Multiple Choice

A portfolio comprises Cochlear (beta of 1.5) and Westpac (beta of 0.75) . The amount invested in Cochlear is $25 000 and in Westpac is $35 000. What is the beta of the portfolio?


Definitions:

Indirect Method

An approach to assemble the cash flow statement by adjusting net income for fluctuations in balance sheet accounts to determine the cash flow originating from operations.

Operating Activities

The component of cash flow statement that reflects the cash generated or used by the core business operations.

Net Cash

The amount of cash available after accounting for cash inflows and outflows, indicating a company's liquidity.

Indirect Method

A method of reporting net cash flow from operating activities on the cash flow statement by adjusting net income for changes in the balance sheet accounts.

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