Megan Ross holds the following portfolio:
Stock
Investment
Beta
A
$150,000
1.40
B
50,000
0.80
C
100,000
1.00
D
75,000
1.20
Total
$375,000
What is the portfolio's beta?
A. 1.06
B. 1.17
C. 1.29
D. 1.42
E. 1.56
Answer: B
You might also like to view...
Which organization, in addition to the Financial Accounting Standards Board (FASB), occasionally issues authoritative rules for financial statements?
a. The Accounting Profession b. International Accounting Standards Board (IASB) c. Securities and Exchange Commission (SEC) d. Internal Revenue Service (IRS)
A company should use process costing rather than job order costing if
a. production is only partially completed during the accounting period. b. the product is produced in batches only as orders are received. c. the product is composed of mass-produced homogeneous units. d. the product goes through single stage of production.
Downy Airlines discloses the funded status of pension plans and the health and life insurance plans for two recent years. Both the pension plan and other benefit plans are underfunded. The underfunded amounts for these plans appear in
a. current assets and noncurrent assets on the balance sheet. b. current liabilities and noncurrent liabilities on the balance sheet. c. shareholders' equity on the balance sheet. d. revenue on the income statement. e. expenses on the income statement.
Explain the process of margin trading. What does an investor need to be careful of?
What will be an ideal response?