An Investor Divides Her Portfolio into Thirds, with One Part

question 52

Multiple Choice

An investor divides her portfolio into thirds, with one part in Treasury bills, one part in a market index, and one part in a diversified portfolio with Beta of 1.50.What is the Beta of the investor's overall portfolio?

• A)0.833
• B)1.000
• C)1.167
• D)1.250

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Definitions:

Darwin

Charles Darwin, a 19th-century naturalist best known for his contributions to the science of evolution, specifically the theory of natural selection.

Opposite Emotions

Emotions that are diametrically different from each other, such as happiness and sadness, that can affect mental state and decision-making.

James-Lange Theory

A theory of emotion that proposes emotions occur as a result of physiological reactions to events, suggesting that physiological arousal precedes the emotional experience.

Bodily Responses

Physical reactions or changes in the body that occur in response to stimulus or emotional states, such as increased heart rate or sweating.