1. A portfolio is comprised of 30 percent of stock X, 55 percent of stock Y, and 15 percent of stock Z. Stock X has a beta of .87, stock Y has a beta of 1.48, and stock Z has a beta of 1.04. What is the portfolio beta?
1.111
1.190
1.157
1.231
1.012
2. Jerry purchases office supplies totaling $1,890. He can take advantage of cash terms of 2/10, n30 if he obtains a short-term loan. If he can borrow the money at 10.5% annual ordinary interest for 20 days, how much money will he save?
A. 32.75
B. 11.03
C. 37.50
D. 26.77