What Is Your Portfolio Beta If 50% of Your Money

question 12

Multiple Choice

What is your portfolio beta if 50% of your money is invested in the market portfolio and the remainder is invested in a risk-free asset?

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

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Definitions:

Analytic Thought

A cognitive process that involves breaking down complex information or concepts into smaller, more manageable parts for examination and evaluation.

Logical Thinking

The process of using a rational, systematic series of steps to come to conclusions.

Thinking Intuitively

The process of making judgments and solving problems based on instincts and feelings rather than explicit reasoning or analysis.

Comforting Prejudices

Prejudiced beliefs that provide comfort by reinforcing existing opinions or societal norms.