If You Hold a Portfolio Made Up of the Following

question 24

Multiple Choice

If you hold a portfolio made up of the following shares: Investment Value Beta
Share A $2,000 1.5
Share B $5,000 1.2
Share 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

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Definitions:

Asset Classes

Categories of assets, such as stocks, bonds, real estate, and commodities, that exhibit similar characteristics and behave similarly in the marketplace.

Agency Problems

Conflicts of interest that arise when there's a disconnect in objectives between decision-makers (agents) and the owners (principals) of an entity.

Corporate Spies

Individuals or entities that engage in espionage or intelligence gathering on competitors for commercial purposes, not for national security.

Security Analysts

Professionals who perform analysis on securities or the security market to make investment recommendations.