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:

Actual Damages

A sum of money equal to the real financial loss suffered by an injured party. Also called compensatory damages.

Damages

A monetary compensation awarded by a court to a person who has suffered loss or harm due to the unlawful act or negligence of another.

Malicious Prosecution

The act of initiating a legal action with the intent to harass or to unjustly harm another party.

Abuse of Process

The use of legal proceedings in an improper manner, often with malicious intent or to achieve a goal outside the scope of the process.