Assume a Portfolio Is Made Up of Three Stocks The Portfolio's Beta Is:
A) 0

question 36

Multiple Choice

Assume a portfolio is made up of three stocks: $\begin{array} { | l | l | l | l | } \hline & \text { Expected } & \text { Investment } & \text { Beta } \\\hline & \text { Return } & & \\\hline \text { Stock A } & 18 \% & \$ 150,000 & 1.20 \\\hline \text { Stock B } & 14 \% & \$ 150,000 & 1.00 \\\hline \text { Stock C } & 12 \% & \$ 300,000 & 0.80 \\\hline & & \$ 600,000 & \\\hline\end{array}$ The portfolio's beta is:

• A) 0.95.
• B) 1.15.
• C) 1.00.
• D) None of the above

---

Definitions:

Bone Densitometry

A diagnostic test, often referred to as a DEXA scan, that measures the density and mineral content of bones to assess osteoporosis risk.

Mineral Density

A measure of the concentration of minerals (mainly calcium and phosphorus) in a specific volume of bone, indicating its strength and health.

Therapeutic Uses

Describes the application of a drug or medical treatment for the purpose of curing or alleviating symptoms of diseases or disorders.

Radiologist

A medical doctor specialized in diagnosing and treating diseases and injuries using medical imaging techniques, such as X-rays, MRI, and CT scans.