A Portfolio Comprises Coke (Beta of 1

question 4

Multiple Choice

A portfolio comprises Coke (beta of 1.3) and Wal-Mart (beta of 0.7) . The amount invested in Coke is $20,000 and in Wal-Mart is $20,000. What is the beta of the portfolio?

• A) 0.9
• B) 0.95
• C) 1.00
• D) 1.10

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Definitions:

Perception

The process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

Incremental Theory

The belief that abilities can be developed through dedication and hard work, creating a love of learning and a resilience necessary for great accomplishment.

Entity Theory

The belief that personal qualities such as intelligence and ability are fixed and cannot change significantly.

Intelligence

denotes the capacity for learning, understanding, and applying knowledge and skills and the ability to adapt to new situations.