If a Stock Portfolio Replicates the Returns on a Stock

question 92

Multiple Choice

If a stock portfolio replicates the returns on a stock market index, the beta of the portfolio will be

• A)less than 1.
• B)greater than 1.
• C)equal to 0.
• D)equal to 1.
• E)negative.

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Definitions:

Price of Houses

The amount of money needed to buy a residential property, which can vary widely based on location, size, and other factors.

Demand for Product

The desire and willingness of consumers to purchase a specific good or service at a given price.

Output

The aggregate quantity of products or services generated by a business, sector, or economic system within a specified timeframe.

Resources

The total means available for economic and operational development, including natural, human, and capital assets.