What Is the Beta of a Portfolio Comprised of the Following

question 113

Multiple Choice

What is the beta of a portfolio comprised of the following securities? $\begin{array}{lll} \underline{\text { Stock } }& \begin{array}{l}\text { Amount } \\ \underline{\text { Invested }}\end{array} & \begin{array}{l}\text { Security } \\ \underline{\text { Beta }}\end{array} \\ \text { A } &\$ 2,000 & 1.20 \\\mathrm{~B} & \$ 3,000 & 1.46 \\\text { C } & \$ 5,000 & .72\end{array}$

• A)1.008
• B)1.014
• C)1.038
• D)1.067
• E)1.127

---

Definitions:

Tax On Emissions

A governmental levy placed on the emission of pollutants, intended to reduce environmental harm.

Socially Optimal Level

A state where resources are allocated in the most efficient manner from the standpoint of society as a whole.

Industry Output

The total production of goods and services by all firms within a specific industry.

Housing Price Index

A statistical measure designed to reflect the price changes of residential housing.