Suppose You Held a Well-Diversified Portfolio with a Very Large

question 21

Multiple Choice

Suppose you held a well-diversified portfolio with a very large number of securities, and that the single index model holds. If the σ of your portfolio was 0.30 and σ_M was 0.16, the β of the portfolio would be approximately

• A) 0.64.
• B) 1.80.
• C) 1.88.
• D) 1.56.

---

Definitions:

Speech Therapist

A healthcare professional specialized in evaluating and treating communication disorders and swallowing problems.

Medical Interpreter

A professional who facilitates communication between healthcare providers and patients when they do not share a common language, ensuring accurate and comprehensive understanding.

Effective Communication

The ability to convey information to another effectively and efficiently, ensuring mutual understanding.

Maintain Privacy

The act of keeping personal or sensitive information secure from unauthorized access or disclosure.