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:

First-Generation

Refers to the initial or earliest version of a product, technology, or generation of people, often characterized by less sophistication compared to later versions.

Second-Generation

Refers to the offspring of immigrants or the subsequent version or improvement of a product or technology.

Antipsychotics

A class of medication primarily used to manage psychosis, including delusions, hallucinations, paranoia, or disordered thought, found in certain mental health conditions such as schizophrenia.

Extrapyramidal Side Effects

Involuntary movements or motor control disturbances associated with certain medications, typically those used to treat psychiatric disorders.