Suppose You Hold a Portfolio Consisting of a $10,000 Investment

question 32

Multiple Choice

Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks.The portfolio's beta is 1.25.Now suppose you decided to sell one of your stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.35.What would the portfolio's new beta be?

• A)1.17
• B)1.23
• C)1.29
• D)1.36
• E)1.43

---

Definitions:

Imitation Reflex

An innate reflex observed in infants where they mimic gestures or facial expressions, playing a role in learning and social interaction.

Deferred Imitation

The ability to reproduce a behavior that was observed at an earlier time, even when the model is no longer present.

Vygotsky's Theory

A developmental theory that emphasizes the role of social interaction in cognitive development.

Skilled Caregivers

Individuals with specialized knowledge and competencies in providing care and support, particularly in healthcare or child development contexts.