Warren has a portfolio with three stocks as shown in the table. What is the beta of Warren's portfolio?
Stock Required Return Portfolio Weight Beta
Raymond's 6.75% 0.4 0.50
Keller Industries 11.43% 0.35 1.50
Huron Power 9.27% 0.25 1.05
A) 0.775
B) 0.988
C) 1.017
D) 1.340
E) 1.505
B
You might also like to view...
Which of the following describes information overload?
a. The inability of preparers to process and adequately report all the information that should be provided in financial reports. b. The inability of auditors to process and adequately attest to all the information that should be provided in financial reports. c. The inability of users to process and intelligently use all the information provided in financial reports. d. The inability of preparers, auditors, and users to process and adequately utilize all the information provided in financial reports.
Which of the following types of process is correctly described?
a. A project process is used when the product is unique and typically produced one at a time to the customer’s specifications. b. A job-shop process is used when the processing requirements are identical for each product. c. A continuous process is used when the production process runs from beginning to end of each working day. d. A flexible process is used when the same resources and equipment can be used to produce entirely different products, ranging from refining oil to producing automobiles.
The theory of distributive justice analyzes society through a "veil of ignorance."
Indicate whether the statement is true or false
Anthem Inc. issues 200,000 shares of stock with a par value of $0.05 for $154 per share. Three years later, it repurchases these shares for $84 per share. Anthem records the repurchase in which of the following ways?
A. Debit Stockholders' Equity for $30.80 million, credit Additional Paid-in Capital for $16.80 million and credit Cash for $16.80 million. B. Debit Common Stock for $10,000, debit Additional Paid-in Capital for $16,790,000 and credit Cash for $16.80 million. C. Debit Treasury Stock for $16.80 million and credit Cash for $16.80 million. D. Debit Common Stock for $10,000, debit Additional Paid-in Capital for $30,790,000 and credit Cash for $30.80 million.