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

question 13

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 0.18 and σ_M was 0.22, the β of the portfolio would be approximately

• A) 0.64.
• B) 1.19.
• C) 0.82.
• D) 1.56.

---

Definitions:

Musculoskeletal System

The organ system that enables humans to move using the muscular and skeletal systems, including bones, muscles, cartilage, tendons, ligaments, and joints.

Body Mechanics

The application of physical principles to achieve maximum efficiency and to limit risk of physical stress or injury to the practitioner of physical therapy, massage therapy, or chiropractic or osteopathic manipulation.

Aging Population

A demographic trend characterized by an increase in the median age of a population, often due to declining birth rates and increased life expectancy.

Healthcare Services

Professional services rendered by healthcare providers or institutions aimed at preventing, diagnosing, treating, or managing illnesses and disease.