You Hold a Diversified Portfolio Consisting of a $5,000 Investment

question 33

Multiple Choice

You hold a diversified portfolio consisting of a $5,000 investment in each of 20 different common stocks. The portfolio beta is equal to 1.12. You have decided to sell a lead mining stock What is the new beta of the portfolio?

• A) 1.1139
• B) 1.1700
• C) 1.2311
• D) 1.2927
• E) 1.3573

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Definitions:

Industrial/Organizational Psychologists

Professionals who apply psychological principles and research methods to the workplace, focusing on improving productivity, work-life balance, and the overall well-being of employees and organizations.

Japanese Management Practices

A set of business strategies and workplace philosophies often associated with Japan, emphasizing teamwork, quality circles, and continuous improvement.

Manufacturing Plants

Facilities that are involved in the production of goods on a large scale through the combination of labor, machines, and chemical or biological processing.

Social Psychologists

Researchers or professionals who study how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.