What Can You Assume About an Investor Whose Diversified Portfolio

question 27

Multiple Choice

What can you assume about an investor whose diversified portfolio of stocks yielded 25% when the market portfolio yielded 15%?

• A)treasury bills are offering a 10% yield
• B)the portfolio Beta is greater than 1.0
• C)the portfolio Beta equals 1.67
• D)the investor's portfolio contains many defensive stocks

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Definitions:

Bureaucratic Control

The influence of behavior through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision.

Behaviour

The behavior of a person or collective when responding to outside or inside triggers.

Day-To-Day Supervision

The ongoing, immediate oversight of activities and tasks, typically aimed at ensuring they are accomplished efficiently and correctly.

Policies And Procedures

Established guidelines and methods that dictate how various tasks and operations should be performed within an organization.