You Are Managing a Portfolio of 10 Stocks Which Are

question 69

Multiple Choice

You are managing a portfolio of 10 stocks which are held in equal amounts.The current beta of the portfolio is 1.64,and the beta of Stock A is 2.0.If Stock A is sold,what would the beta of the replacement stock have to be to produce a new portfolio beta of 1.55?

• A) 1.10
• B) 1.00
• C) 0.90
• D) 0.75
• E) 0.50

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Definitions:

Dying Prematurely

The occurrence of death before the average age of death in a population, often due to preventable health issues or conditions.

Married People

Individuals who are bound by the social or legal institution of marriage.

Alternative Medicine

Practices and treatments used in place of standard medical therapies, often lacking significant scientific validation.

Upper-Income

Refers to the top tier of income earners, often associated with significant wealth compared to the general population.