You Have a Portfolio with a Beta of 3

question 19

Multiple Choice

You have a portfolio with a beta of 3.1. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 4.5?

• A) 3.31
• B) 3.51
• C) 3.61
• D) 3.71

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Definitions:

Shallow Emotions

A term describing a limited range of emotional expression or depth, often associated with certain personality disorders.

Conduct Disorder

A range of antisocial types of behavior displayed in childhood or adolescence.

Aggressive

Characterized by behavior or attitudes that display a readiness to confront or attack, often manifesting in forceful, assertive, or proactive actions.

Destroys Property

Behaving in a manner that causes physical damage to objects or possessions, often as a manifestation of anger or distress.