The Beta of a Portfolio

question 38

Multiple Choice

The beta of a portfolio

• A) does not change over time.
• B) is irrelevant, only the betas of the individual assets are important.
• C) is the weighted average of the betas of the individual assets in the portfolio.
• D) is the sum of the betas of all assets in the portfolio.

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Definitions:

Income Summary

A temporary account used in the closing process that summarizes a company's revenues and expenses for the accounting period.

Revenue Account(s)

Accounts that track the income generated from the sale of goods or provision of services before any expenses are deducted.

J. Higgins, Withdrawals

The amount of money withdrawn by J. Higgins from a business for personal use, affecting the owner's equity.