With a Given Size Portfolio, the Higher the Portfolio Beta

question 55

Multiple Choice

With a given size portfolio, the higher the portfolio beta,

• A)the more likely the portfolio is to go up, rather than down.
• B)the more likely the portfolio is to go down, rather than up.
• C)the fewer contracts necessary to hedge the portfolio.
• D)the more contracts necessary to hedge the portfolio.

---

Definitions:

Mood-Congruent Information

Refers to the tendency to remember information that is consistent with one's current mood or emotional state.

Social Memory

The collective sharing, preservation, and transmission of memories within a community or society.

Affect Influences

How emotions and mood states can impact decision-making, perception, and behavior.

Mild Mannered

Describes a person who is gentle, not easily provoked, and displays a calm behavior.