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...
A severe recession is a depression, a period in which prices fall but there is little demand because few people have money to spend and many are out of work. This condition is part of ________
A) the competitive environment B) the business cycle C) the technological environment D) the legal environment E) social norms
Benny Wong bought a BMW from Danny's Auto sales on Monday. He wanted the tires upgraded to a special racing model. The cost was worked into the purchase price. The whole purchase was financed over three years. Danny's called Benny at 5:00 p.m
on Thursday to tell him the tires were on and that he could pick up the car. Benny didn't actually receive this message until Friday at 8:00 a.m. Friday, the car was severely damaged in the hail storm. Who is responsible for repairing the car? Why? A) Benny. He was the owner of the car as of Monday when the deal was completed. B) Benny. He was the owner of the car as of Thursday at 5:00 p.m. when he was notified that the tires were on. C) Danny's. Benny did not receive notice of completion until after the car was damaged. D) Danny's. Benny would not become the owner until the price was determined. E) Benny. The hail storm was an act of God for which Danny's can't be held responsible.