Which of the Following Portfolios Will Have the Highest Beta

question 51

Multiple Choice

Which of the following portfolios will have the highest beta?

• A)Portfolio of U.S. Treasury bills
• B)Portfolio of U.S. government bonds
• C)Portfolio containing 50 percent U.S. Treasury bills and 50 percent U.S. government bonds
• D)Portfolio of U.S. common stocks

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Definitions:

Selective Attention

The process by which one focuses on one input or task while ignoring other stimuli or information.

Inattentional Blindness

A psychological lack of attention that is not associated with any vision defects or deficits, where an individual fails to perceive an unexpected stimulus that is in plain sight when other attention-demanding tasks are being performed.

Daydreaming

A mild, self-generated form of detachment from immediate surroundings, characterized by a person's drift of attention away from the task at hand.

Dreaming

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often reflecting unconscious material.