Your Portfolio Is Comprised of 30% of Stock X,50% of Stock

question 99

Multiple Choice

Your portfolio is comprised of 30% of stock X,50% of stock Y,and 20% of stock Z. Stock X has a beta of .64,stock Y has a beta of 1.48,and stock Z has a beta of 1.04. What is the beta of your portfolio?

• A) 1.01
• B) 1.05
• C) 1.09
• D) 1.14
• E) 1.18

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Definitions:

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single entity.

Amortize

To amortize means to gradually reduce or write off the initial cost of an asset over a period, typically through regular payments covering interest and principal.

Non-Controlling Interest

A share of equity ownership in a subsidiary not attributable to the parent company, representing the portion of the subsidiary's net assets and net income not owned by the parent.

Subsidiary

A company that is controlled by another company, known as the parent company, through ownership of more than 50% of its voting stock.