If a Stock Portfolio Replicates the Returns on a Stock

question 92

Multiple Choice

If a stock portfolio replicates the returns on a stock market index, the beta of the portfolio will be

• A)less than 1.
• B)greater than 1.
• C)equal to 0.
• D)equal to 1.
• E)negative.

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Definitions:

Pretend Play

A form of play in which children imagine scenarios and act them out, playing different roles and using objects as symbols.

Imitating Behavior

The act of copying or mimicking the actions, gestures, speech, or mannerisms of another person.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, where infants interact with the world and learn through their senses and motor activities.

Formal Operational Stage

The stage in Jean Piaget's theory of cognitive development where individuals gain the ability to think abstractly and logically.