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

question 67

Multiple Choice

You currently own a portfolio valued at $56,000 that has a beta of 1.25. 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) 0.74
• B) 0.79
• C) 0.86
• D) 0.92
• E) 1.00

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Definitions:

Reinforced

In behavioral psychology, reinforced refers to the process of strengthening a behavior by providing a consequence that increases the likelihood of the behavior's repetition.

Behaviorism

A theory of learning which states that all behaviors are acquired through conditioning, emphasizing the role of environmental factors.

Environmental Factors

Conditions and elements that exist outside the individual, influencing their behavior, development, and life processes.

Observable Behaviors

Observable behaviors are actions or reactions of an individual that can be visually monitored and recorded by others.