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:

Office Facilities

Spaces and related services necessary for a business to function, including buildings, equipment, and utilities.

Selling

The process of persuading someone to buy a product or service.

Administrative Expense

Costs related to the general operation of a company that are not directly tied to a specific business activity, such as salaries of executive personnel, office supplies, and utilities.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly attributed to the product manufacturing process.