The Beta of a Portfolio Can Be Calculated As

question 28

Multiple Choice

The beta of a portfolio can be calculated as:

• A)A sum of the betas of the stocks in the portfolio.
• B)The weighted sum of the betas in the portfolio.
• C)The average of the betas in the portfolios.
• D)The weighted sum of the betas plus the correlation between betas.

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Definitions:

Critical Factor

An essential element or condition required for a process or outcome to occur, often determining success or failure.

Gentle Slopes

Slopes with a gradual incline, typically found in landscapes where erosion has smoothed the terrain over time.

Discontinuities

Interruptions or breaks in the physical continuity or uniformity of a geological structure, such as faults or joints.

Soluble Minerals

Soluble minerals are those that can dissolve in water, playing a crucial role in the geochemistry of groundwater and the formation of features like caves and sinkholes.