How Is It Possible to Invest Only in the Market

question 61

Multiple Choice

How is it possible to invest only in the market portfolio yet have a portfolio beta of 1.5?

• A) Don't diversify away the unique risks.
• B) Purchase only aggressive stocks for the portfolio.
• C) Purchase only stocks with high levels of systematic risk.
• D) Borrow funds to increase your investment.

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Definitions:

Respiratory Volumes

Measurements that describe the amount of air in the lungs during various phases of the breathing cycle.

Pulmonary Fibrosis

A lung disease that occurs when lung tissue becomes damaged and scarred, impeding effective gas exchange and breathing.

Chronic Bronchitis

A long-term inflammation of the bronchi in the lungs, often caused by smoking, leading to coughing and difficulty breathing.

Emphysema

A lung condition that is part of chronic obstructive pulmonary disease (COPD), characterized by damage to the air sacs (alveoli), leading to difficulty breathing.