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.

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Definitions:

Bath Water

Water used for bathing, which can include various temperatures and may contain added substances like soap or bubbles.

Chilling

The sensation of cold that can accompany fever, fear, or the environment; it sometimes precedes the onset of a fever.

Excess Drying

Excessive loss of moisture, leading to dryness, often pertaining to skin or mucous membrane conditions.

Bed Bath

A method of bathing individuals who are bedridden or unable to bathe themselves, using basins, sponges, or wipes to clean the body while remaining in bed.