You Are Considering a Portfolio of Three Stocks with 30

question 29

Multiple Choice

You are considering a portfolio of three stocks with 30% of your money invested in company X, 45% of your money invested in company Y, and 25% of your money invested in company Z. If the betas for each stock are 1.22 for company X, 1.46 for company Y, and 1.03 for company Z, what is the portfolio beta?

• A) 1.24
• B) 1.00
• C) 1.28
• D) 1.33

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Definitions:

Bi-Conditional

A logical relation or statement that is true if and only if both components are either true or false together.

Truth Table

A mathematical table used in logic to determine whether a proposition is true or false under all possible circumstances.

Argument

Refers to the combination of a person’s claim and the reason or reasons a person presents in support of that claim.

Truth Table

A mathematical table used in logic to determine the validity of various logical expressions by listing all possible outcomes.