You Have a Portfolio with a Beta of 1

question 52

Multiple Choice

You have a portfolio with a beta of 1.25. What will be the new portfolio beta if you keep 80 percent of your money in the old portfolio and 20 percent in a stock with a beta of 1.75?

• A) 1.00
• B) 1.35
• C) 1.50
• D) 3.00

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Definitions:

Neocortex

The part of the brain involved in higher-order brain functions such as sensory perception, cognition, generation of motor commands, spatial reasoning, and conscious thought.

Levels-Of-Processing

A theory in cognitive psychology suggesting that deeper levels of analysis produce more enduring memory.

Memory

The ability of the mind to retain and recall information.

Frog

An amphibian creature with long hind legs for leaping, smooth skin, and typically lives both in water and on land.