You own a portfolio that is equally invested in three assets:

(1 ) the risk-free asset; (2 ) Stock 1; and (3 ) Stock 2. Stock 1 has a beta of 1.9 and the portfolio has the same risk as the market portfolio.
What is the beta of Stock 2 in the portfolio?
A) 1.0
B) 1.1
C) 1.2
D) 1.3
E) 1.4


B

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The primary reason given by managers for most mergers is the acquisition of more assets so as to increase sales and market share.

Answer the following statement true (T) or false (F)

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The draft that requires immediate payment by the drawee to the payee, which is true of a check, is called:

a. a trade acceptance draft b. a sight draft c. a time draft d. an account receivable e. none of the other choices

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5. The basic elements of access control are: subject, __________, and access right

What will be an ideal response?

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A woman applies for credit from a department store. Which of the following information is legal for the department store to consider in deciding if it should give credit?

a. that her former husband ran up a large unpaid bills b. that she is pregnant c. that she receives Food Stamps d. that she is Hispanic e. all of the other choices are illegal to consider

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