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

Recognize the implications of specific case rulings on the handling of negotiable instruments.

Understand the key theoretical perspectives in sociology and their approaches to cultural phenomena.

Recognize the defining features of culture and its role in human experience.

Identify the processes through which cultures change and innovate.

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Definitions:

Critical Thinking

A systematic scrutiny and appraisal of a subject to develop an informed verdict.

Self-Regulated System-2

Refers to the conscious, reflective, and deliberative aspect of cognition controlling thoughts, emotions, and actions.

Anchoring with Adjustment

A cognitive bias where initial information serves as an anchor and subsequent decisions are adjusted around this anchor, though often not enough.

Expression

The process of making known one's thoughts or feelings through words, gestures, or artistic mediums.