An Investor Divides Her Portfolio into Thirds, with One Part

question 39

Multiple Choice

An investor divides her portfolio into thirds, with one part in Treasury bills, one part in a market index, and one part in a diversified portfolio with beta of 1.50. What is the beta of the investor's overall portfolio?

• A) 0.83
• B) 1.00
• C) 1.17
• D)1.25

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Definitions:

Inspirational Motivation

A leadership approach that involves inspiring and motivating others to achieve a vision or set of goals through positive reinforcement and enthusiasm.

Transactional Influence

A leadership style focused on the exchange of resources or rewards for performance or compliance.

GLOBE Model

A framework for understanding the impact of culture on leadership and organizational practices across the world.

Cultural Dimensions

Cultural dimensions are frameworks or indices used to describe and compare the effects of national culture on values in the workplace and beyond, originating from research by social scientists like Geert Hofstede.