1. Why is insurance offered for loss of property in a fire but not a loss to a portfolio of common stock when the stock market drops? Relate anything you can think of in your response.
2. How can individuals deal with being overworked? Have you been in jobs where you were overworked? How did you cope with it? Explain.
3. An individual has $15,000 invested in a stock with a beta of 0.3 and another $45,000 invested in a stock with a beta of 1.3. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.