The Beta of a Risky Portfolio Cannot Be Less Than

question 67

Multiple Choice

The beta of a risky portfolio cannot be less than _____ nor greater than ____.

• A)0; 1
• B)1; the market beta
• C)the lowest individual beta in the portfolio; market beta
• D)the market beta; the highest individual beta in the portfolio
• E)the lowest individual beta in the portfolio; the highest individual beta in the portfolio

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Definitions:

Contra Asset

An account on a company’s balance sheet holding a balance that is opposite to the normal account balance, such as accumulated depreciation.

Accrued Expense

An expense that has been incurred but not yet paid or recorded in the accounting records.

Annual Property Taxes

Taxes levied by local governments on the value of real estate property, paid yearly by the property owners.

Paid

Refers to the status of having settled an obligation or receiving compensation for services or goods.