Jonathan has the following portfolio of assets.

Asset Investment Beta A $2500 .78 B $4000 .85 C $3500 1.70 What is the beta of Jonathan's portfolio?

A. 1.08

B. 1.11

C. 1.13

D. 1.15

OKAY stock has a beta of 0.73. The market as a whole is expected to decline by 20% thereby causing OKAY stock to

A. decline by 14.6%.

B. decline by 20.7%.

C. increase by 14.6%.

D. increase by 20.7%.

Combining uncorrelated assets will

A. increase the overall risk level of a portfolio.
B. decrease the overall risk level of a portfolio.
C. not change the overall risk level of a portfolio.
D. cause the other assets in the portfolio to become positively related