You Are Managing a Portfolio of 10 Shares Which Are

question 66

Multiple Choice

You are managing a portfolio of 10 shares which are held in equal amounts.The current beta of the portfolio is 1.64, and the beta of Share A is 2.0.If Share A is sold, what would the beta of the replacement share have to be to produce a new portfolio beta of 1.55?

• A) 1.10
• B) 1.00
• C) 0.90
• D) 0.75
• E) 0.50

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Definitions:

Huntington Disease

Autosomal dominant genetic disorder that affects the nervous system; results in a progressive loss of neurons in the brain.

Alzheimer Disease

Disease of the central nervous system (brain) that is characterized by an accumulation of beta amyloid protein and neurofibrillary tangles in the hippocampus and amygdala.

Parkinson Disease

A degenerative disorder of the central nervous system that primarily affects movement, often including tremors and stiffness.