You Currently Own a Portfolio Valued at $56,000 That Has

question 28

Multiple Choice

You currently own a portfolio valued at $56,000 that has a beta of 1.28.You have another $10,000 to invest and would like to invest it in a manner such that the portfolio beta decreases to 1.20.What does the beta of the new investment have to be?

• A)0.75
• B)0.79
• C)0.86
• D)0.92
• E)1.15

---

Definitions:

Puzzle

A problem or game that tests ingenuity, knowledge, or skill and often requires a solution or answer.

Jigsaw Classroom

The Jigsaw Classroom is an educational approach designed to promote cooperation and reduce competition among students by assigning them to interdependent roles in small, diverse groups.

Non-prejudiced People

Individuals who do not harbor prejudices, maintaining unbiased attitudes and behaviors towards others based on race, gender, religion, or other social categories.

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to the feedback between belief and behavior.