You Hold a Portfolio Consisting of a $5,000 Investment in Each

question 15

Multiple Choice

You hold a portfolio consisting of a $5,000 investment in each of 20 different stocks.The portfolio beta is equal to 1.12.You have decided to sell a coal mining stock (b = 1.00) at $5,000 net and use the proceeds to buy a like amount of a mineral rights company stock (b = 2.00) .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:

Trigeminal

Pertaining to the trigeminal nerve, which is the fifth cranial nerve responsible for sensation in the face and motor functions such as biting and chewing.

Trochlear

Pertaining to the fourth cranial nerve (trochlear nerve) which is primarily involved in eye movement.

Vaginal Examination

A medical inspection of the vagina and cervix, often performed to assess the health of the female reproductive system or during labor to evaluate the progress of childbirth.

Patient Position

The arrangement or posture in which a patient is placed for various medical or surgical procedures, to promote comfort, safety, and effective therapeutic outcomes.