Currently, You Own a Portfolio Comprised of the Following Three

question 91

Multiple Choice

Currently, you own a portfolio comprised of the following three securities. How much of the riskiest security should you sell and replace with risk-free securities if you want your portfolio beta to equal 90 percent of the market beta?

• A) $7,023.15
• B) $7,811.29
• C) $8,666.67
• D) $9,613.64
• E) $10,318.50

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Definitions:

Partial Revocation

The act of cancelling or annulling a portion of a legal document while leaving the rest unchanged.

Trustee

A trustee is an individual or organization that holds and manages assets or property for the benefit of another party, under a trust agreement.

Real Estate

The land along with any permanent improvements attached to the land, whether natural or man-made, including water, trees, minerals, buildings, homes, fences, and bridges.

Incompetent

Lacking the necessary skills, capacities, or qualifications to perform a required task or duty effectively.