The Beta of Any Portfolio Can Be Computed as the

question 27

Multiple Choice

The beta of any portfolio can be computed as the

• A) slope of the security market line
• B) sum of the betas for each asset held in the portfolio divided by the number of assets in the portfolio.
• C) the standard deviation of the expected returns of the portfolio minus the risk-free rate.
• D) weighted average of the betas for each asset held in the portfolio.

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Definitions:

Uranium

A dense, metallic element used as fuel in nuclear reactors and as a component in nuclear weapons, known for its radioactive properties.

Regression

A process in statistics that determines the relationship between variables, or in geology, the retreat of the sea from the land.

Unit 1

Often a reference to the primary or initial segment in a series within educational materials or scientific classifications, indicating foundational knowledge or elements.

Mudstone

A fine-grained sedimentary rock formed from mud, characterized by a mixture of clay and silt-sized particles.