If You Have a Portfolio with a Market Value of $100

question 6

Multiple Choice

If you have a portfolio with a market value of $100 million and a beta (measured against the S&P 500) of 1.5, then if the market rises by 10 percent, what value would you expect your portfolio to have?

• A) $100 million
• B) $110 million
• C) $150 million
• D) $165 million
• E) $1.65 billion

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Definitions:

Metamorphosis

Transition from one developmental stage to another, such as from a larva to an adult. See also complete metamorphosis and incomplete metamorphosis.

Amphibia

A class of cold-blooded vertebrates that includes frogs, toads, salamanders, and newts, distinguished by their ability to live both in water and on land.

Vertebrate Classes

Categories within the subphylum Vertebrata, distinguishing animals based on key features like presence of a backbone, including mammals, birds, reptiles, amphibians, and fish.

Cartilaginous Skeleton

A type of skeleton found in certain animals where the principal structural component is cartilage, rather than bone.