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:

Mental Activity

The operations of the mind involving thinking, understanding, learning, and remembering.

Science of Behavior

The systematic study of the actions and reactions of humans and animals in response to external or internal stimuli.

Predict Human Behavior

The process of using psychological principles, statistical data, and algorithms to forecast actions or reactions of individuals in specific situations.

Connecting Information

The process of relating new information to existing knowledge in order to enhance understanding and memory.