You Invest $600 in Security a with a Beta of 1.5

question 49

Multiple Choice

You invest $600 in security A with a beta of 1.5 and $400 in security B with a beta of .90. The beta of this portfolio is ________.

• A) 1.14
• B) 1.2
• C) 1.26
• D) 1.5

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Definitions:

Achievement Dysfunction

A situation where an individual or organization is unable to achieve its goals or perform at a satisfactory level due to various barriers.

Affluenza

A social condition arising from the desire to be more wealthy or successful, often leading to psychological distress or dissatisfaction.

Conspicuous Consumption

The spending of money on and the acquisition of luxury goods and services to publicly display economic power and social status.

Conspicuous Waste

The act of buying products not for their intrinsic value or utility but to flaunt wealth and status by their mere possession or waste.