What Is the Portfolio Beta If 75% of Your Money

question 106

Multiple Choice

What is the portfolio beta if 75% of your money is invested in the market portfolio, and the remainder is invested in a risk-free asset?

• A) 0.50
• B) 0.25
• C) 1.25
• D) 1.00
• E) 0.75

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Definitions:

Negatively Correlated

A statistical relationship between two variables in which one variable increases as the other decreases.

Positively Skewed

Describes a distribution of data where the tail is longer on the right side, indicating a larger number of observations are below the mean.

Negatively Skewed

Describes a distribution of data where the tail is on the left side of the distribution, indicating that the majority of data points are located to the right of the mean.

Research Methods

Techniques or procedures used to gather and analyze information to increase understanding of a topic or issue.