A Portfolio Comprises Cochlear (Beta of 1

question 101

Multiple Choice

A portfolio comprises Cochlear (beta of 1.3) and Westpac (beta of 0.8) . The amount invested in Cochlear is $20 000 and in Westpac is $200 000. What is the beta of the portfolio?

• A)1.14
• B)1.05
• C)0.99
• D)0.97

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Definitions:

Bile

A digestive fluid produced by the liver, stored in the gallbladder, and secreted into the small intestine to aid in the digestion and absorption of fats.

Digestive System

The complex series of organs and glands responsible for the digestion and absorption of nutrients, as well as the elimination of waste products.

Bolus

A tiny ball-shaped lump of material, particularly of food chewed right before it's swallowed.

Esophagus

The muscular tube that connects the throat (pharynx) with the stomach, conveying food and liquids.