Your Broker Mailed You Your Year-End Statement

question 5

Multiple Choice

Your broker mailed you your year-end statement.You have $25,000 invested in Dow Chemical,$18,000 tied up in GM,$36,000 in Microsoft stock,and $11,000 in Nike.The betas for each of your stocks are 1.55 for Dow,1.12 for GM,2.39 for Microsoft,and .76 for Nike.What is the beta of your portfolio?

• A)1.46
• B)1.70
• C)2.60
• D)0.41

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Definitions:

Partnership Liability

Legal obligations that may be incurred by a partnership, including debts and damages, for which the partners may be personally responsible.

Compete

To strive against others for the purpose of achieving a goal, an award, or superiority in a field.

Partnership

A business arrangement where two or more individuals share ownership, profits, and liabilities of a business venture.

Consent

Agreement or permission given by a party for something to happen or be done.