1. You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R, 10 percent in Stock S, and 40 percent in Stock T. The betas for these four stocks are 1.72, 0.75, 0.92, and 1.34, respectively. What is the portfolio beta?

A) 1.25

B) None of these are correct.

C) 1.31

D) 1.27

E) 1.18

2. What if last year the Andrews Corporation issued 238,700 shares at $58.00 per share. The effect on the balance sheet would have been: Select:

A. Cash increased $13,844,600 Common Stock increased $13,844,600.

B. Retained Earnings increased $13,844,600; Cash increased $13,844,600.

C. Common Stock increased $13,844,600; Retained Earnings decreased $13,844,600.

D. Cash increased $13,844,600; Common Stock decreased $13,844,600.