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Author Question: Beta is ________. A) a measure of systematic risk B) a measure of nondiversifiable risk C) the ... (Read 120 times)

cagreen833

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on: Jul 10, 2018
Beta is ________.
 
  A) a measure of systematic risk
  B) a measure of nondiversifiable risk
  C) the appropriate measure of risk for a well-diversified portfolio
  D) All of the above

Question 2

Richard owns the following portfolio of securities. What is the beta for the portfolio?
 
  Company Beta Percent of Portfolio
  Apple 2.50 25
  Wells Fargo 0.65 50
  eBay 1.70 25
 
  A) 1.00
  B) 0.65
  C) 1.62
  D) 1.38


todom5090

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: D

Answer to Question 2

Answer: D
Explanation: D) p =  i  wi = 2.5  25 + .65  50 + 1.70  25 = 1.38.


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