Go Global Investment Management Has an Asset Allocation Strategy of 70

question 29

Multiple Choice

Go Global Investment Management has an asset allocation strategy of 70% U.S. investments and 30% global investments. Within the United States, Go Global has allocated 65% of its portfolio to equities and 35% to bonds. Go Global now holds 4% of its U.S. equity portfolio in the stock of Wally World. Internationally, Go Global has allocated 62% to equities and 38% to bonds. About what percentage of Go Global's total portfolio is invested in Wally World?

• A) 1%
• B) 1.26%
• C) 1.5%
• D) 1.82%

---

Definitions:

Beta Coefficients

Statistical measures that compare the volatility of an individual asset's returns to the overall returns of the market or a specific benchmark.

Positive

A term generally indicating a beneficial, favorable, or desirable outcome or attribute.

Regression

A statistical method used to estimate relationships among variables, often to predict a dependent variable from one or more independent variables.

Market Index

A statistical measure that indicates the performance of a group of stocks, representing a specific segment of the stock market.