A portfolio is made up of Stocks A, B, C, and D in the proportion of 20%, 30%, 25%, and 25% respectively. The nondiversifiable risks of the stocks as measured by their betas are 0.4, 1.2, 2.5, and 1.75 for Stock A, B, C, and D respectively. The expected returns of the stocks are 12%, 24%, 30%, and 28% respectively. Measure the beta of the portfolio.?
A. ?1.8
B. ?1.9
C. ?1.5
D. ?1.4
E. ?1.3
Answer: C
Business
You might also like to view...
The net income for a company was $400,000 last year and is $500,000 this year. The percentage of increase or decrease is
a. 20%; b. 25%; c. 80%; d. 125%; e. cannot be determined from the information given
Business
The internal rate of return method uses cash flows rather than net income.
Answer the following statement true (T) or false (F)
Business
Executive recruiters are sometimes referred to as ______.
a. management agents b. headhunters c. promoters d. private recruiters
Business
Fungible goods are goods that are alike naturally or by agreement or trade usage
Indicate whether the statement is true or false
Business