A Portfolio Beta Can Be Defined as The

question 194

Multiple Choice

A portfolio beta can be defined as the:

• A) Weighted average of the betas of the individual securities within the portfolio.
• B) Total of the betas of the individual securities within the portfolio.
• C) Amount of unsystematic risk remaining after the portfolio is diversified.
• D) Measure of the unsystematic risk of the portfolio relative to the level of market risk.
• E) Measure of the total risk of the portfolio in excess of the level of market risk.

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Definitions:

Tax Revenue

The income that is gained by governments through taxation.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in its price.

Price Inelastic

Refers to a situation where the quantity demanded or supplied of a good or service changes by a smaller percentage than changes in price.

Alcohol Tax

A tax imposed on the sale of alcoholic beverages, often used as a means to discourage excessive drinking and to generate government revenue.