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:

Procedural Safeguards

These are legal protections designed to ensure that individuals' rights are preserved during legal or administrative processes.

Amendments

Alterations or additions made to a legal document or legislation, often to correct, improve, or update its provisions.

U.S. Constitution

The foundational document of the United States establishing the framework of government and fundamental laws, guaranteeing various rights to its citizens.

Organized Crime

Structured groups engaging in criminal activities, often for profit and power, with operations often extending internationally.