If You Hold a Portfolio Made Up of the Following

question 14

Multiple Choice

If you hold a portfolio made up of the following stocks: Investment Value Beta
Stock A $2,000 1.5
Stock B $5,000 1.2
Stock C $3,000 .8
What is the beta of the portfolio?

• A) 1.17
• B) 1.14
• C) 1.32
• D) Can't be determined from information given

---

Definitions:

Net Income

The total profit or earnings of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Operating Expenses

Costs associated with the day-to-day operations of a business, such as wages, rent, and utilities, excluding capital expenditures and cost of goods sold.

Profitability Ratios

Financial metrics used to assess a business's ability to generate earnings relative to its revenue, assets, equity, or other financial metrics.