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Author Question: Market risk refers to the tendency of a stock to move with the general stock market. Which of the ... (Read 31 times)

jmoore1989

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on: Aug 7, 2023

Question 1

Keith Johnson has $100,000 invested in a two-stock portfolio: $40,000 is invested in Potts Manufacturing and the remainder is invested in Stohs Corporation. Potts’s beta is 1.70 and Stohs’s beta is 0.50. What is the portfolio’s beta?

◦

0.74


◦

0.98


◦

1.12


◦

1.35



Question 2

Market risk refers to the tendency of a stock to move with the general stock market. Which of the following best describes a stock with a below-average market risk?

◦

it will tend to be less volatile than an average stock and its beta will be less than 1.0


◦

it will tend to be less volatile than an average stock and its beta will be greater than 1.0


◦

it will tend to be less volatile than an average stock and its beta will be equal to 1.0


◦

it will tend to be less volatile than an average stock and its beta will be greater than 1.0 and less than 1.5

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by jmoore1989 on Aug 7, 2023

athenaheim

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jmoore1989

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

pratush dev

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Reply 3 on: Yesterday
Wow, this really help

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