You Sell Some of Your Chapters Common Stock (Which Tends

question 332

Multiple Choice

You sell some of your Chapters common stock (which tends to move up and down with the economy as a whole) and replace it with the common stock of El Dorado Gold Mining, Inc. (whose
Shares tend to rise when the economy falls, and vice versa) . Your portfolio's beta should
_______________.

• A) Increase.
• B) Decrease.
• C) Remain unchanged.
• D) Either increase or decrease.
• E) Definitely exceed the beta of the market when all is said and done.

---

Definitions:

Motivation

The internal and external factors that stimulate people to take actions that lead to achieving a goal.

Reporting Relationships

The formal lines of authority and accountability within an organization, detailing who reports to whom.

Communication Linkages

The channels and methods by which information is shared and transferred within an organization or between different entities.

Clarifying Jobs

The process of making job roles, responsibilities, and expectations clear to employees, often to improve understanding and performance.