A Portfolio Is Invested 20 Percent Each in Stock L

question 21

Multiple Choice

A portfolio is invested 20 percent each in Stock L with a beta of 1.52 and Stock K with a beta of 1.28.The remainder of the portfolio is invested in secured debt.What is the portfolio beta?

• A)1.72
• B).56
• C)1.40
• D)1.33
• E)1.00

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Definitions:

Conservative Social Ethic

A set of moral principles that lean towards traditional values and practices, often emphasizing family, religion, and community stability.

Immigration

The action of coming to live permanently in a foreign country.

National Culture

The shared set of customs, beliefs, arts, and social institutions of a nation that contribute to the identity and cohesion of its people.

Gilded Age

A period in the late 19th century in the United States, marked by rapid industrialization, economic growth, and the extravagant wealth of a few juxtaposed with widespread poverty and corruption.