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Bob and Mary Own the Same Assets in Each of Their

question 96

True/False

Bob and Mary own the same assets in each of their portfolios.Each has a different allocation of their investments across the various securities contained in the portfolio.The portfolios of Bob and Mary must have equal betas because they are investing in the same securities,just in different proportions.

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Definitions:

Proscriptive

Pertaining to prohibitions, rules, or norms specifying what individuals should not do in a given context.

Injunctive

Relating to an authoritative rule or order which dictates expected or allowable behaviors.

Focus Theory

A theoretical framework that emphasizes how individuals allocate their attention and resources towards specific goals or tasks.

Salience

The aspect of a schema that is active in one’s mind and, consciously or not, colors perceptions and behavior.

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