A Portfolio Contains Four Assets

question 24

Multiple Choice

A portfolio contains four assets. Asset 1 has a beta of .8 and comprises 30% of the portfolio. Asset 2 has a beta of 1.1 and comprises 30% of the portfolio. Asset 3 has a beta of 1.5 and comprises 20% of the portfolio. Asset 4 has a beta of 1.6 and comprises the remaining 20% of the portfolio. If the riskless rate is expected to be 3% and the market risk premium is 6%, what is the beta of the portfolio, the expected return on the portfolio and the market?

• A) 1.19; 6.57; 6
• B) 1.19; 7.14; 6
• C) 1.19; 10.14; 9
• D) 1.25; 10.5; 6
• E) 1.25; 10.5; 9

Identify what constitutes job requirements, job descriptions, and job specifications.

Understand the legal implications of job performance criteria.

Comprehend the objectives and uses of job classification systems.

Understand the benefits of organizational restructuring and less bureaucracy.

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Definitions:

Publicly Accountable Enterprises

Businesses that have accountability to a broad group of stakeholders, including shareholders and the public, typically required to follow specific accounting standards.

Debt Issuer

An entity, like a corporation or government, that issues debt instruments such as bonds to raise capital by borrowing from investors.

Banks

Financial institutions licensed to receive deposits and make loans, offer various other financial services.

PSAB

Public Sector Accounting Board, overseeing the creation and implementation of accounting standards for public sector entities in Canada.